Prime Minister releases book on history of RBI

Mumbai, Mar 18 (UNI) Prime Minister Manmohan Singh today lauded the role of Reserve Bank of India (RBI) in developing the monetary policy to fuel the growth of the economy.

The need of the hour is to adhere to fiscal rules, the Prime Minister said while releasing a book on the history of RBI that has captured its evolving role in shaping the country's economy over the years.

Addressing a gathering, which included Union Finance Minister P Chidambaram and former governors, Dr Singh said there is a need to adopt a cautious approach to the capital inflow into the country as financial stability had become a second key policy driver in the financial management.

Dr Singh, a former RBI Governor himself, said that the average rate of inflation in the past decade is about five per cent and there is not much concern over the current account deficit.

Only photographers and electronic media were allowed to witness the function.

The Prime Minister arrived here this afternoon by a special plane, accompanied by Mr Chidambaram and former RBI Governor Bimal Jalan. He drove straight to the RBI headquarters from the airport.

The book is a testimony to the effective and influential role that the country's central bank has played in managing the Indian economy during the period between 1935 and 1981.

It has three volumes that would be useful to not only the students and practitioners but also to those concerned with the problems of a developing economy, an RBI official said.

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