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Reserve Bank of India Deputy Governor SS Mundra said on Wednesday the central bank would have room to cut interest rates should factors leading to lower inflation continue.
The comments come ahead of consumer inflation data due on Friday. The RBI held interest rates steady earlier this month, but said it could ease monetary policy early next year.
Mundra also said the central bank would grant licences to so-called payment banks by March or April after releasing the final guidelines for applications last month.
