Capital inflows not a concern for now: RBI

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Kolkata, Dec 10: The Reserve Bank of India head on Thursday, Dec 10, said that there is no concern of capital inflows building asset bubbles in India as of now.

Speaking to reporters, D Subbarao said, "If there is too much liquidity, it has the potential for asset price build-up."

"Every asset price build-up need not necessarily result in a bubble," he told reporters after a meeting of RBI's central board of directors here.

He said the inflows were roughly in line with India's current account deficit. "We cannot call it a capital surge like what happened in 2006-08," he added.

The RBI on Wednesday, Dec 9, tightened the guidelines for corporates raising resources from external commercial borrowings.

Subbarao said corporates were now able to raise resources from non-debt sources.

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