Rajan calls on Jaitley, discuss macro-economic situation

A day after presenting first bi-monthly monetary policy of 2015-16, RBI Governor Raghuram Rajan today called on Finance Minister Arun Jaitley and is believed to have discussed macro economic situation and the new monetary policy framework.
Besides Jaitley, he also met Minister of State for Finance Jayant Sinha and other senior functionaries in the ministry, sources said.
Talking to reporters, the Governor said he has asked banks to restructure loans of farmers affected by unseasonal rainfall and hailstorm.
Earlier in the day, Prime Minister Narendra Modi had announced that banks have been asked to restructure loans of affected farmers.
The initial estimates, according to the RBI, "indicate that as much as 17 per cent of the sown area under the rabi crop may have been affected though the precise extent of the damage remains to be determined."

Yesterday Rajan had said that the monetary policy framework agreement signed by the Government and the RBI in February 2015 will shape the stance of monetary policy in 2015-16 and succeeding years.

In the bi-monthly policy, the RBI had kept the key interest rate unchanged, but successfully persuaded the large banks to cut lending rates.
The Governor was here to attend the launch function of MUDRA Bank.
Meanwhile, Finance Secretary Rajiv Mehrishi told reporters that there was no plan to raise FII limit in government securities. FIIs can currently invest up to USD 35 billion in G-secs.
To a question, the Secretary said there was no proposal to dilute its stake in listed companies held through SUUTI immediately.

Specified Undertaking of UTI (SUUTI), formed in 2003 is an offshoot of erstwhile UTI, has investments in several unlisted companies. Axis Bank, L&T and ITC are the listed companies in SUUTI.