Dr Tayal hails RBI's credit policy

Mumbai, Oct 31 (UNI) Dr P K Tayal, Promoter-Director, Bank of Rajasthan, has welcomed the RBI credit policy which was announced here today.

Overall the mid-term review of annual policy for the current financial year presented by RBI Governor Dr Y V Reddy, is very positive, growth oriented and best in the present situation, he said in a press release here today.

A sort of confirmation of high GDP growth (8 per cent) in the year and opportunities for all economy segments to keep growth momentum at high levels, simultaneously keeping the inflation within the acceptable range (5.0-5.5 per cent), remain the key positive signals from the policy, he said.

In line with US Federal's recent response, and on market's expected lines, rate of interest indicators are kept at the present levels, signaling no rate hike worries in the short and short-to-medium time frame.

Banks have been given time relief for migrating to Basel II framework which will help them to catch-up or fine-tune required capital levels during the extended time. Various steps towards liberal use of forex earning and in investment, are indicative of further integration with global markets through capital account convertibility, he said.

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