RBI should now act on rate cut -- Sinha

RBI should now act on rate cut -- Sinha

New Delhi, Mar 1: "We have taken enough courage to create a situation for RBI to act, if it wishes to do so," Sinha told industrialists at a post-budget interactive session organised by Federation of Indian Chambers of Commerce and Industry (Ficci) here.

Government had reduced the interest rates on small savings and employees provident fund by 100 basis points to 11 per cent. "It is my responsibility to ensure ncessary conditions that would lead to an interest cut by RBI," he said.

The Finance Minister said the decision to abolish the twoper cent interest tax was also taken in view of the need to encourage more offtake of funds by industry.

"The decision to amend the RBI Act is aimed at givinggreater autonomy to the Central Bank in deciding matters on its own," Sinha said.