RBI chief says recent cash steps not to hurt growth

MUMBAI (Reuters) - Reserve Bank of India Governor Duvvuri Subbarao said on Thursday the recent cash tightening measures will not hurt growth, although there might be pain in the short-term.

Having a stable exchange rate is important for growth to take off, he added.

Last month, the RBI further lowered the limit for borrowing by banks under the daily liquidity adjustment facility (LAF) and increased the cash reserve ratio requirements in an effort to support the rupee.

(Reporting by Neha Dasgupta; Editing by Sunil Nair)