Although the real GDP growth was moderated to 6.6 per cent from 7.1 per cent a year ago, there was a strong rebound in the second half of the year on the back of a turnaround in investment demand, he said.
Urjit Patel said that banking frauds amount to looting of our country's future by some in the business community in cahoots with some lenders.
Between February 1-9, the BSE Sensex had shed around 1,900 points. The other index, NSE Nifty shed over 500 points during the same period.
Urjit Patel said that RBI is working closely with the financial services department to finalise the extent of funding for each bank and the amount of recap bonds to be on banks' balance sheets as government's equity contribution.
The MPC also kept reverse repo rate under the LAF unchanged at 5.75 per cent and marginal standing facility (MSF) rate and the Bank Rate at 6.25 per cent.
A majority of the economists have polled in favour of the Reserve Bank of India maintaining a status quo on repurchase rates for commercial banks.
The RBI has decided not to pursue a proposal for introduction of Islamic banking in the country.
Economic history had shown repeatedly that only healthy banks lend to healthy firms and borrowers, creating a cycle of investment and job creation.
Only one from the six-member monetary policy committee pressed for lowering rates by at least 25 basis points.
In August this year, the RBI's monetary policy committee had decided to lower interest rates to 6 per cent.
Admitting that the balance sheet of most state-run banks are not healthy enough to take large haircuts, which is a corollary of any bad loan resolution, Urjit Patel called for their recapitalisation.
In first rate cut since October 2016, the Reserve Bank of India on Wednesday slashed benchmark lending rate by 25 basis points from 6.25 per cent to 6.0 per cent.
The six-member MPC of the RBI headed by Urjit Patel will meet on August 1-2 in Mumbai for the third bi-monthly policy review of the fiscal.
The new notes will be bearing inset letter 'S' in the number panel and signature of Governor Urjit R Patel, the RBI said in a notification today.
RBI Governor Urjit Patel today refused to give the amount of demonetised notes deposited with banks saying they are still being counted.
It is for the fourth time that the parliamentary panel has called Urjit Patel to discuss the note ban.
CEA Arvind Subramanain blamed the RBI’s inflation forecasting methodology and said the errors have been large and systematically one-sided in overstating inflation
The Monetary Policy Committee, headed by RBI Governor Urjit Patel, today decided to keep the key policy rates unchanged, while marginally slashing its growth projection for the current fiscal
Reserve Bank of India had kept ready a reasonable stock of new Rs 500 and Rs 2,000 notes before the announcement of demonetisation on November 8 by Prime Minister Narendra Modi, Urjit Patel has told a Parliamentary Committee.
RBI Governor Urjit Patel has said the Indian banking system could be better off if some public sector banks are consolidated to have fewer but healthier entities.
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