Rajan said banks have typically become used to reasonably slow moving base rate which gives them time to adjust the deposit cost before they adjust lending.
He also made it clear that the pre-2005 notes will continue to be legal tender.
Governor Raghuram Rajan has asked his colleagues to ensure that the central bank is not seen as mere "paper tiger" and even rich and powerful wrong-doers are not spared.
Indian capital markets joined the global sell-off sparked by China growth concerns
The Governor of the Reserve Bank of India may need all the suave charm of the fictional British spy to sell that same hard-nosed agenda to a powerful new prime minister.
In cutting interest rates and giving a boost to the government's efforts to revive growth, RBI governor Raghuram Rajan displayed the pragmatism and flexibility familiar to those who work with him.
RBI wants the lending rates to be determined by the market.
Some accounts can be revived by rescheduling loans, which the RBI envisages to do once the norms get finalised after the public discussion.
Raghuram Rajan, Governor of the Reserve Bank of India, has scoffed at the contention that BJP's Prime Ministerial nominee, Gujarat Chief Minister Narendra Modi will be the knight in shining armour who will root out corruption in India.
Applauding Facebook co-founder Mark Zuckerberg for the reported pledge to give majority of his wealth to philanthropy, well known Hindu statesman Rajan Zed has called upon India's billionaires/millionaires to make similar pledges.
He has had a productive first year at the RBI -- one which saw, also, India's economic imbalances improve and the unexpectedly strong general election outcome.
A two-year extension at the helm of the RBI still looks a real possibility
Terming Rajan as "India's prescient banker," Time said he is among a rare breed of "economic seers".
The Enforcement Directorate has filed its first charge sheet in connection with its money laundering probe against Chinese smartphone maker Vivo-India and some others, official sources said on Thursday. The prosecution complaint was filed before the court of Special Judge Kiran Gupta in New Delhi on Wednesday under the criminal sections of the Prevention of Money Laundering Act and Vivo-India has been named an accused apart from those arrested in this case, the sources told PTI. The judge posted the matter for consideration on December 13.
RBI governor Raghuram Rajan says a cut in cash reserve ration will not at all impact lending rates.
The central bank and Indian government has reached a "broad consensus" on the composition of a rate-setting panel.
India on Tuesday said it does not anticipate any problem in bringing back Chhota Rajan from Indonesia as he was arrested on a Red Corner Notice issued by Interpol.
RBI itself is part of the multi-agency group announced by the Indian government to monitor such holdings and take appropriate action.
Central bank Governor Raghuram Rajan drew kudos from Moody's Analytics for his monetary stance.
India's macroeconomic indicators are improving and inflation has been coming down consistent with the central bank's forecast, but Asia's third-largest economy needs investment growth to pick up, he added.
The meeting, which comes just days before the next bi-monthly monetary policy review on June 3, lasted for about 50 minutes.
Reserve Bank Governor Raghuram Rajan expressed confidence in India's growth and said the country is on target to meet Jan inflation target of below 6%.
Minutes after the Union Cabinet approved raising the cap on subsidised liquefied petroleum gas (LPG) cylinders from nine to 12 per connection in a year, Reserve Bank of India (RBI) Governor Raghuram Rajan questioned the decision, suggesting it was "misdirected subsidy".
The Governor, who completes one year in RBI on Wednesday, has stabilised the rupee and is getting a fix on inflation.
RBI Governor Raghuram Rajan on Friday said repo rate has been hiked as inflation pressures remain high.
After two rate hikes in less than six weeks aimed at curbing inflation, RBI Governor Raghuam Rajan on Wednesday said the central bank may be done with interest rate increases as their impact on the economy is assessed.
Rajan strongly defends RBI's decision to hold the key rates in the absence of any new data points.
Rajan said the relationship between the RBI and the government has been strong.
The special Maharashtra Control of Organised Crime Act court on Thursday rejected the bail application of Paulson Joseph, an alleged Chota Rajan aide, arrested in connection with the murder of senior journalist Jyotirmoy Dey.
Jaitley has made it a habit of giving soundbytes to the media like his predecessors on why RBI should cut interest rates
Rajan, who will be a key member of Finance Minister P Chidambaram's team, was also honorary economic adviser to Prime Minister Manmohan Singh.
A number of industrial countries are now resorting to populism and this has its own set of political implications.
While the rest of India marches towards the promised destiny of 'progress', Bihar - the heart of India- is doomed to poverty and the injustices of a caste-based society.
'Industrial countries are still struggling, with a few exceptions, to grow and the uncertainty about growth in the US as well the world is probably what impelled the Fed to stay on hold.'
Concerned over banks hiding their actual NPA numbers, RBI Governor Raghuram Rajan on Tuesday said the central bank is "increasingly turning towards taking action" on such divergences.
New Delhi was reluctant to spook investors by clipping the bank's wings
Rajan was speaking at a news conference.
'The Chinese devalued the yuan initially but then stopped'.
RBI aiming to bring down headline number to 8% by end of this year and to 6% by the end of next year.
Rajan's exit will neither affect the RBI's de facto independence nor its working.
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