LDALL RBI 2LST

"With the recovery now firmly in place, we need to move
in a calibrated manner in the direction of normalising our
policy instruments," Subbarao said.
The RBI had, in January, begun the process of rolling back
the easy money policy introduced in the wake of the global
financial crisis of 2008.
"And everything need not be done in one step and we
believe that moving in several baby steps towards
normalisation is better for economy to adjust to pre-crisis
growth level," the RBI Governor said.
While the Finance Minister said the government borrowing
programmes would not be disturbed by RBI measures, the central
bank admitted that the mop up by the Centre would be a
challenge.
"Managing the borrowings of the Government during 2010-11
will be a bigger challenge than last year," Subbarao said.
Government has projected to borrow Rs 4.57 lakh crore
this fiscal, slightly up from Rs 4.51 lakh crore last fiscal.
Global financial meltdown was at the back of RBI when it
announced to come out with norms for salaries of top
executives of banks by June-end, as agreed by the leaders of
G-20.
The Reserve Bank also said it would review the
liberalisation policy for foreign banks by September, put on
hold in 2009 after the global financial mess. PTI TEAM IND
RDM


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