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.