He also affirmed that over time, as the government finances improve, the SLR will be brought down further.
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.
The RBI in November released a framework for large foreign banks with more than 20 branches to convert into wholly owned subsidiaries.
PM has asked the Reserve Bank to prepare a 20-year road map for financial inclusion
'For every person there is a different way that you show respect for your country...my mother-in-law will say karmayogi is the way to go - do your work.'
The macro economic situation and currency depreciation might top the priority list of Reserve Bank of India (RBI) governor-designate Raghuram Rajan.
The Reserve Bank is likely to continue buying dollars from market to add to its reserves in the coming months, which has crossed $300 billion, says a report.
The Reserve Bank of India (RBI) kept its key policy repo rate unchanged at 8.0 percent on Tuesday, as widely expected, while expressing concerns about risks to its target to bring consumer inflation down to 6 percent by January 2016.
Erstwhile RBI governors, including Raghuram Rajan never had cordial relations with the government.
The RBI is working to nudge large foreign banks with 30 or more branches in India to get incorporated locally.
Few proposals included in the Finance Bill would not help ease liquidity concerns in the economy, say RBI officials.
ICICI Bank has the largest proportion of SDR loans as a percentage of its total, followed by state-run United Bank of India and Canara Bank.
According to Subbarao, the pressure on the currency was inevitable.
The government has retained Arvind Subramanian as its chief economic advisor, unlike other American professors Dr Raghuram Rajan and Arvind Panagariya, who quit their jobs as RBI governor and NITI deputy chairman respectively.
Experts interviewed CMDs of nine public sector banks on Friday and Kamath is believed to be in the reckoning
India was less directly affected by the Chinese stock market rout and yuan devaluation that battered currencies and markets in the region.
Governor Raghuram Rajan lowered the benchmark repurchase rate to 7.75 per cent from 8 per cent, the first reduction since May 2013.
'The concern that the bad bank may create a moral hazard for the system is extremely valid.'
'We expect the Reserve Bank of India to deliver a 25 bps rate cut in April to support growth.'
Rajan's remarks come as the Modi-led government completes one year.
The key short-term lending rate (repo rate)has been hiked by 0.25 pc to 7.50 pc.
The Financial Stability and Development Council members include heads of regulatory bodies like RBI, Sebi and Insurance Regulatory Development Authority.
A section of the media on Thursday reported, quoting an unnamed EC official, that it may not allow RBI to go ahead with the plan before the polls and that they need more clarity from the Mint Road on certain aspects.
While Raghuram Rajan's departure under these circumstances is a pity, it would be wrong to conclude that the RBI or the economy cannot do without him.
Nudging the RBI to cut interest rates to boost growth, Finance Minister Arun Jaitley on Sunday said he had already made his mind clear and hoped the central bank will take decision after taking into account various factors.
With September 11's rise, has appreciated 5.5% in just a week
The rupee has also risen during the period and is now trading below the crucial Rs 60 against the dollar mark.
An early choice will also allow Mr Rajan to do some hand-holding.
In response the BRICS - Brazil, Russia, India, China and South Africa - have taken steps to strengthen cooperation such as setting up a joint development bank
Reserve Bank of India (RBI) Governor Raghuram Rajan has set himself a target of lowering consumer inflation and is even ready to raise rates to achieve it, risking friction with the new government, if he is seen as overstepping.
The bank chiefs have also cancelled the customary media conference after the bi-annual policies.
On price rise, HSBC said that the rate of cost inflation decelerated sharply while output prices were unchanged.
The post of chairman and managing director has been split and the government has appointed managing directors and chief executive officers in four banks -- Indian Overseas Bank, United Bank of India, Oriental Bank of Commerce and Vijaya Bank.
Sectoral performance was mixed with media and PSU banking stocks attracting buyer interest and healthcare, FMCG and metal stocks bearing the brunt of the bears
Perhaps because the Modi government had some differences of opinion with two of the economist governors (one of whom was appointed by the Manmohan Singh government), there is a view that its political leadership prefers a civil servant to head the RBI, notes A K Bhattacharya.
ICICI Bank chief Chanda Kochhar on Wednesday said the country has many positives like high forex reserves, and low current account and fiscal gaps, which can help it weather the ongoing volatilities.
Dhoot stated that Value Industries has not withdrawn the application and has only sought clarifications from RBI on certain issues.
Rajan has ignored pressure to loosen policy.
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On the Congress accusing BJP of hypocrisy for its failure to disclose names, Jaitley said the Congress got it all wrong because media "completely misreported" the case.
Polling for the 288-seat Assembly is being held in a single-phase on Wednesday.
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