FRBM can bring down fiscal deficit to 3 pc by 2009: Reddy

Mumbai, July 12 (UNI) RBI Governor Dr Y V Reddy today said India should be able to bring down its fiscal deficit at the international average of three per cent by 2009 with the introduction of new FRBM (Fiscal Responsibility Budgetary Management) regime.

Dr Reddy said, ''We are passing through a transitional period, still I'm sure that the market in the country should operate normally after the introduction of the FRBM regime.'' He pointed out that the country's fiscal deficit was nearing five per cent at the current levels, which should be brought down to the international average of almost three per cent by the year 2009.

Talking to the media here this evening on the sidelines of the Reserve Bank Rajbhasha shield distribution ceremony, Dr Reddy said that the FRBM regime, in fact, talks of bringing down the revenue deficit to zero per cent. The RBI Governor expressed his satisfaction over the functioning of the banks in the country.

Earlier, while distributing the Rajbhasha shields and prizes to public sector bank/financial institutions, Dr Reddy stressed that the customer services must be brought at the global level which was possible only when the national language, Hindi, was implemented in most of the banking transactions.

Also, he urged the bankers to chalk out strategies to see how Hindi could be implemented in the banking transactions.

The RBI deputy Governor V Leeladhar and CMDs of various banks including Bank of Baroda's A K Khandelwal and Union Bank of India's M V Nair were also present on the occasion.

UNI KKD MAZ VKG1925