RBI Governor Raghuram Rajan will also participate in the meet.
Rate cuts are a natural consequence that the RBI has no hesitancy in delivering.
Today, with growth having slowed and macro-economic challenges in every direction, would the government have benefited from the advice of 'Harvard' economists? asks T N Ninan.
'There has been an enormous amount of attention paid to issues like capital account convertibility, bank privatisation and bank priority sector norms. There are many other areas where reforms are less controversial, but perhaps as important,' the report of the high-level Committee on Financial Sector Reforms headed by Raghuram Rajan, a professor at Graduate School of Business, University of Chicago, said.
Rajan posed the question while speaking at the annual leadership conference in Mumbai National Association of Software and Services Companies.
If we persist in talk and little action, I think we will slip. I fear the consequences of sustained slow growth. We need strong, sustained, clever action today, Rajan said.
The decision assumes significance in the wake of a scam in the PMC Bank affecting lakhs of customers who are facing difficulties in withdrawing their money due to restrictions imposed by the Reserve Bank of India.
Former RBI governor Raghuram Rajan, who faced a stinging attack from Finance Minister Nirmala Sitharaman for presiding over the "worst phase" of the Indian banking sector, on Thursday reminded her that two-third of his tenure as the head of the central bank was under the Bharatiya Janata Party government.
Rajan expressed concerns on pressures on the services front.
Rajan, a professor at the University of Chicago, said if the money raised by the government was not spent, it could result in inflationary pressures, pushing up real interest rates. The problem could get aggravated if foreign capital flows rose, said Rajan, who was in Mumbai to deliver a lecture.
India has been assigned the lowest investment grade rating with a high risk profile by various global agencies.
The committee on financial sector reforms headed by Raghuram Rajan has recommended that provident funds and insurance companies should be allowed to invest abroad, a move that will require legislative changes.The panel's draft report has also called for the introduction of "true auctions" in securities, reduction in the auction and trading period, unified disclosure norms for multiple securities, use of call options for opening and closing price on exchanges.
The former Union minister alleged that the government is "intolerant to the slightest criticism".
Finance Minister P Chidambaram held informal consultations on Wednesday on possible candidates for the Reserve Bank deputy governor's post.
Rajan encouraged the Indian-American business community to get involved in the 'nitty gritty of the implementation process,' saying such involvement was not difficult especially since the Indian government has the political will to reform.
The days of anti-reform, anti-growth advisers that undermined our economy in the UPA-II years will now be strictly behind us: Bhagwati
As the global economy sways into uncertain territories and domestic prices almost certain to rise, Raghuram Rajan's ideas would have come in handy.
According to the global financial services major, FIIs have recouped around 25 per cent of the outflows seen over the June-August period, when the country witnessed its sharpest bout of FII outflows since the global financial crisis.
The RBI targets inflation at 6 percent by January 2016 and 4 percent for 2017/18.
From social engineering to bearing the cost of COVID-19 treatment to financial reconstruction of Tamil Nadu's debt the debutant chief minister is emerging as a leader with a difference, says Shjne Jacob
The right policy response to global price increases is not straightforward. The draft report is wide-ranging in its scope, and it attempts to provide a coherent, integrated view of financial sector reforms that would equip India's financial sector to support growth, widen financial access and maintain stability over the next decades. The report is being released for public discussion at a critical juncture in both the domestic and global economy.
The Reserve Bank of India had taken steps to tighten liquidity in a bid to curb volatility in the forex market after the rupee fell to a record low of 61.21 to the dollar on July 8.
He also said that he stands by Modi as he admires his spine but took a dig at journalists planting "deliberately false stories" to provoke him.
Finance Minister expects rate cut by RBI.
Tension between the government, specially the finance ministry, and RBI is as old as the central bank itself.
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%.
Raghuram Rajan will take over as RBI Governor on September 4 at a time when the country is facing a grave economic crisis.
Rajan said the central bank has used up all its "space available" to cut interest rates
To a question related to RBI's policy rate, Rajan said no amount of interest rate cut is going to help if credit growth is weak.
Raghuram Rajan said the passage of the GST Bill augurs well for the growing political consensus for economic reforms.
Jaitley slams Rajan for MSME banking crisis statement, says postmortem is easier than action
Arun Jaitley had proposed to set up a Public Debt and Management Agency.
RBI Governor Raghuram Rajan plans to write on 'academic issues' after leaving the Reserve Bank.
Modi will also need to reconcile market demands with those from forces within his own administration
For 2015-16, IMF pegged India's growth rate at 7.5 per cent.
RBI chief Raghuram Rajan said Asia's third-largest economy is being hampered by a drop in public and private investments.
Raghuram Rajan's three-year term is the shortest of any G20 country and the recent governors have been given second terms as much as seven months in advance.
Rajan's departure from the RBI is an end to 'outside interference' in policy making, government insiders feel.
Last August, RBI gave in-principle approval to 11 applicants.
India's consumer price inflation dropped to 5.4 per cent in June
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