He also made it clear that the pre-2005 notes will continue to be legal tender.
Two members recommended bringing down the rate by 50 bps in the April policy.
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.
Rajan will be closely working with the RBI governor and the four deputy governors to gain familiarity with the central bank's stance on various issues.
There are however, enough dovish signals in the governor's statement to indicate a pro-growth policy going forward.
Fiscal outlook to be little bit challenging next year: CEA
What's encouraging is that the process of unwinding some of the extraordinary steps taken in last July-August is continuing, so moreliberalisation is back on their agenda.
Indian bond yields fell on Friday after Rajan's remarks, showing the level of concern about high inflation and investors' anticipation that the RBI will continue efforts to stabilise the economy.
At present, bank depositors get an insurance cover of Rs 1 lakh on their amount by the Deposit Insurance and credit Guarantee Corporation.
Rajan had cautioned against any deviation from the fiscal discipline path.
Unless Dr Urjit Patel starts clearing the balance sheets of banks, the investment cycle will not start. Unless the clog in the drain is cleared, further lending cannot happen. If further lending doesn't happen, the investment cycle also will not happen, writes M R Venkatesh.
Raghuram Rajan said on Friday it is not clear India needs a so-called "bad bank.
Media has gone beyond its traditional boundaries.
Rajan was expected to join the search committee to appoint three external members of a new six-member RBI Monetary Policy Committee
Chief Minister MK Stalin has shown that he is cut from a different cloth when it comes to embracing what is current, modern and absolutely necessary. Thus, even while retaining the spirit and content of the pan-Tamil, Dravidian socio-political and socio-economic ideology to the 't', his government has also acknowledged the need to accepting scientifically-proven facts in operational matters, says N Sathiya Moorthy.
The declining inflation and a negative industrial outlook have strengthened the case for RBI.
'Rahul Gandhi's recent video performances offer little hope - the first fell flat in attacking government 'strategy'; the second showed him in a position unbecoming of a leader,' argues T N Ninan.
"I think bankers have expressed some concern that they should not be held liable for actions that are taken in the full spirit of what is needed," Raghuram Rajan said.
Captains of the industry, including Adi Godrej and Anil Ambani, were among the early birds from India Inc to cast their votes in the financial capital.
RBI has intervened throughout this year to prevent rupee strength although it has also stepped in at times of excessive weakness.
The government-appointed Financial Sector Legislative Reforms Commission (FSLRC) has recommended a slew of reforms to overhaul the sector.
The Reserve Bank of India Governor Raghuram Rajan said bringing down inflation would help stabilise the rupee.
Raghuram Rajan has described the fall in reserves as dip in valuation with appreciation of dollar against other currencies
The Reserve Bank of India on Tuesday kept key rates unchanged.
Rajan's comment comes against the backdrop of certain BJP leaders questioning his policies to deal with the current economic woes.
Former RBI Governor Subbarao blamed Chidambaram for undermining the autonomy of RBI and putting pressure on him to cut interest rates.
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.
The EC is yet to decide on RBI's request to grant new licences during the election season.
Prime Minister Narendra Modi defended Mr Rajan, but it would be debated why he took so long to dub criticisms like those against the RBI governor as improper.
"I am an economist. He is a lawyer. How can he be better than me," Swamy, whose antagonism for Jaitley is open, said at an event in New Delhi on Saturday.
The ratings agency currently rates India at Baa3
Even as money floods into India, the Reserve Bank is bracing for the worst, building up currency reserves and drafting a game plan to protect the rupee against the sort of rout that alarmed policymakers and investors last year.
Recent data suggest that the economy isn't out of the woods, and the PM-designate must live up to high expectations.
Individuals will have to wait for some more time; RBI may do away with mid-quarter policy reviews.
Foreign brokerage HSBC said emergence of pleasing data and the likelihood of RBI holding its key rate on April 1, should not lead to believing that the rate tightening cycle is over.
Analysts say the RBI could resume tightening monetary policy by early next year should inflation remain high, even as the economy is growing below the decade low of 5 percent posted in the fiscal year ending in March.
India is more insulated to Fed-related volatility than other emerging markets due to its better economic fundamentals
Pawar asked Modi why he was daring Opposition leaders to bring back Article 370 of the Constitution after it was nullified by Parliament in August.
'A concerted attempt is afoot to try and create a new image of an intelligent man who knows what he is talking about and is far from the person that his critics in the media and Opposition have often portrayed him to be,' says Virendra Kapoor.
If 2012 was a year that saw Indian bourses scripting a dramatic turnaround after the meltdown, 2013 was marked by consolidation in the first half and a new found optimism by market participants in the second half.
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