India's exposure to Greece very limited: Rajan

Says central bank in talks with govt about capital infusion for PSBs

The Reserve Bank of India (RBI) Governor Raghuram Rajan said the government was in talks with the central bank about injecting capital to lenders, while noting it was important to ensure funding for infrastructure projects remain on track.

Turning to the ongoing Greece situation, Rajan said India's direct exposure to the country was "very, very" limited.

He said he hoped foreign investors would be attracted to India nonetheless given the growth prospects, and given foreign exchange buffers were healthy.

Still, Rajan noted that the central bank needed to be careful about relying on foreign investors to finance government or corporate bonds markets, though he was committed to a steady expansion of overseas money in the country's debt.

Rajan also said the government would soon appoint heads of state-run banks.