Rajan said India's good economic fundamentals would allow it to overcome any 'sharp corrections' in global markets

RBI promises to take all necessary steps, including liquidity support

Anandabazar Patrika reported that Rajan would prefer to go back to the United States after his three-year term expires in early September

Lenders have reported a surge in their bad loans in the six months to March after an asset quality review ordered by the central bank.

The draft guidelines include a move to allow large industrial companies to buy up to 10 per cent stakes in new lenders

S&P expects India to grow at 7.4 per cent in 2015, similar to the central bank's forecast for the fiscal year ending in March.

Lending rates have to be sensitive to the policy rate, says RBI.

Rajan was speaking at a news conference.

Rajan said an interest rate cut won't by itself lead to higher economic growth

Analysts expect modest recovery in Indian economy.

The central bank will come out with fresh set of guidelines for companies applying for on-tap bank licence

Rajan added "many" market participants were convinced that India could hit the RBI's target of bringing down consumer inflation to 6 percent by January 2016.

Gandhi was the executive director at the Reserve Bank of India before being promoted to deputy governor post.

it was done following the government's approval to increase foreign investment limit in the bank to 62 per cent from 49 per cent.