The Indian Met Department has predicted a below normal monsoon.
Bajaj hit out at banks for not passing the entire benefits to consumers.
Reserve Bank of India Governor Raghuram Rajan, in a hurriedly called press conference, said that the central bank has now routed back most of the dollar demand from oil companies to the market.
Rajan also said the outlook for agriculture is subdued, in view of both rabi and kharif prospects being hit by monsoon vagaries.
Worries over Greece sparked a sell-off in emerging markets on Monday
Here is some background on the candidates seen as potential successors to Rajan at the RBI
State Bank of India on Friday reduced its deposit rates by 0.25 per cent, making it the third bank after private sector rivals, ICICI Bank and HDFC Bank, to reduce deposit rates this week.
Over to the government how they manage the uncertainty of monsoon and revive spending in order to entice RBI for another round of rate cuts
RBI and Sebi are close to reaching an agreement for providing waiver of existing norms to banks.
Terming the 23.9 per cent fall in economic growth in the June quarter alarming, former Reserve Bank Governor Raghuram Rajan has said bureaucracy should come out of complacency and take meaningful action. The current crisis requires a more thoughtful and active government, he said, adding, "Unfortunately, after an initial burst of activity, it seems to have retreated into a shell."
The RBI governor also said he is not 'overly' worried about any interest rate hike by the Federal Reserve, saying the country had enough foreign exchange reserves.
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The rupee resumed slightly lower at 62.05 per dollar as against the last weekend's level of 62.04 at the Interbank Foreign Exchange market. It recovered to 61.88 per dollar before quoting 61.93 at 1045 hours.
After a delayed start, the monsoon is advancing steadily.
On the controversy surrounding the GDP numbers based on new calculations, he said statisticians have done as good a job as they can and economic growth is significantly high as costs have come down
Rajan said expecting the government to provide all solutions wasn't right.
The minister said she has already taken up the matter with the Finance Ministry.
'The RBI is something like a seat belt. As a driver, the driver being the government, it has the possibility of not putting on a seat belt but of course if you do not put on your seat belt you get into an accident and the accident can be quite severe,' Raghuram Rajan told CNBC TV18. 'The aim of the board is to be Rahul Dravid -- sensible, thoughtful and not, with due respect, Navjot Sidhu,' he added.
The RBI Governor had earlier cautioned the banks on the risks involved in just hunting for numbers, asking them not to compromise on core objectives of the programme.
With crude and commodity prices ebbing and the twin deficits under check, the Reserve Bank should have cut the key policy rate to push investments and boost economic growth, India Inc said.
If companies get into trouble, the loan becomes a non-performing asset and "we very much want these assets to be back on track," Raghuram Rajan said.
This compares with China at over $10 trillion and India $2 trillion.
Thanks to Rajan we are an inflation-targeting country now
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.
"The world is in general equilibrium. A small change in one parameter effects changes in all variables. So Krishna advised: Sukh Dukhe...," Subramanian Swamy tweeted.
The global financial services major had earlier said that the central bank would keep its policy rates on hold.
The hardening of the Wholesale Price Index follows an uptick in retail inflation.
It's time the regulator did some introspection.
'One of the nice things about being a central bank governor is that the markets hang on every word you say'.
Brokerage firm Bank of America Merrill Lynch (BofA-ML) on Monday said the ongoing US government shutdown is positive for the country, as it gives additional time to recoup the forex reserves.
The 30-share Sensex ended up 12 points at 28,517 while the 50-share Nifty ended nearly unchanged at 8,660.
Governor also says two-stage verification for card transactions might go; RBI in process of setting up IT arm
The RBI is exploring ways to allow banks more flexibility in loan restructuring.
Of the 52 economists polled, 50 expect the policy repo rate to remain at 7.25 per cent, and 47 of 48 respondents see the cash reserve ratio, or the portion of deposits banks have to maintain with the central bank, unchanged at 4 per cent.
State Bank of India does not levy any charge for non-maintenance of a minimum balance in basic savings account.
Given the stability of the rupee over the last 10 months, many companies have been tempted not to hedge their foreign currency risk.
There are 350,000 jewellers, of which 13,000 are BIS-certified.
In policy review meet in June, RBI Governor Raghuram Rajan kept interest rates intact.
Rajan Committee has evoked divergent reactions from the states.
After his decision to return back to academia, there have been voices suggesting that his candid public speeches were one of the aspects which made the government uncomfortable about reappointing Rajan for another term
CPI inflation has declined by almost a percentage point from July, from close to eight per cent to just above seven per cent.
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