The Reserve Bank of India (RBI) governor Y V Reddy today said the RBI would consider adopting some practices followed by the central bank of Mexico, including elimination of commission on inter-bank transactions. | |
| Elimination of commission on inter-bank transaction would lead to an end to charges levied for certain services. |
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| Reddy said this at a lecture on "Growth & Stability in Latin America and Asia "" A Contrasting Experience" in the city today. G Ortiz, governor, Central Bank of Mexico, delivered the lecture. |
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| He said plans to host on its website a mortgage simulator which will help bank customers calculate annualised rate of interest on home and other loans. |
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| He asked the Indian Institute of Banking and Finance, the organiser of the lecture, to take up more responsibility for financial education, which is the latest focus of the central bank in improving banking services. |
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| On whether the RBI had intervened when the rupee rose sharply in morning trade, Reddy said "We are closely monitoring the movements in the foreign exchange market and are trying to identify whether there are any signs of excess volatility. |
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| "The outcomes are more important and not the instruments." At present there is no change in RBI's exchange rate policy, he added. |
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| Reuters adds: Dealer said on Friday that state-run banks sold rupees for dollars in suspected intervention on behalf of the central bank after the local currency had risen rapidly to its highest level in nearly eight months. |
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| At 1:55 pm, the partially convertible rupee was at 44.61/62, having fallen from 44.35 per dollar, which was its strongest since late March. It had closed local trade on Thursday at 44.56/57 per dollar. |
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