Reserve Bank of India (RBI) Governor Sanjay Malhotra, on Thursday, called on Telangana Chief Minister A. Revanth Reddy and appreciated the economic policies being implemented by the state government. The RBI Governor, who is Hyderabad to attend the RBI Board meeting, had a courtesy call on the Chief Minister at his Jubilee Hills residence.
According to the Chief Minister's Office (CMO), during the meeting, briefed the RBI Governor on various reforms introduced by the state government. Chief Minister Revanth Reddy said the reforms undertaken in the power sector, including the proposal for the establishment of a third DISCOM.
He also highlighted the steps being taken to increase the use of solar power in the state. RBI Governor Malhotra requested the Chief Minister Revanth Reddy to notify the Banning of Unregulated Deposit Schemes (BUDS) Act and expressed his desire for the state to move forward with more reforms and development-oriented initiatives.
Sanjay Malhotra also briefed the Chief Minister on the initiatives being taken by the RBI with regard to the Unified Lending Interface (ULI). He explained the RBI's campaign on claiming government and private deposits. The RBI Governor was quoted as saying on Wednesday that interest rates are likely to remain low for a "long period" as the Indian economy is recording robust growth while inflation is well under control.
According to a report in the Financial Times (FT), Sanjay Malhotra also said that the country's economic growth could turn out to be higher than the RBI's projection if the trade agreements, currently being negotiated, with the European Union (EU) and the US are signed.
"The impact of the US trade deal could be as much as about half a percentage point," the RBI Governor was quoted as saying in the FT report. The Central bank had not looked at the possible impact of the EU trade deal as deeply, but it would also increase growth, he added.