'Premature' to scrap foreign limits in govt debt: RBI's Rajan

MUMBAI Wed Aug 6, 2014 11:34am IST

The Reserve Bank of India (RBI) Governor Raghuram Rajan leaves after attending a news conference during the bi-monthly monetary policy review in Mumbai August 5, 2014. REUTERS/Danish Siddiqui

The Reserve Bank of India (RBI) Governor Raghuram Rajan leaves after attending a news conference during the bi-monthly monetary policy review in Mumbai August 5, 2014.

Credit: Reuters/Danish Siddiqui

Related Topics

MUMBAI (Reuters) - Reserve Bank of India is not looking to scrap foreign investment limits in government bonds, Governor Raghuram Rajan said on Wednesday, adding it would be "premature" to do that before the global unwinding of stimulus measures and the start of a rate hike cycle.

The inclusion of government bonds into global indices is still in at a discussion stage, Rajan added, and reiterated the need to open the limits at a "measured pace", in a teleconference with analysts and researchers.

Separately, RBI Deputy Governor H.R. Khan said the central bank is in talks with the government to auction cash balances to improve liquidity management.

Khan also said the RBI is talking to the government about providing real-time information on their cash balances.

(Reporting by Neha Dasgupta and Suvashree Dey Choudhury; Editing by Anupama Dwivedi)

FILED UNDER:

Economic Pulse

REUTERS SHOWCASE

Gold Imports

Gold Imports

India eases gold import rule in surprise move.  Article 

Indians in Iraq

Indians in Iraq

India says no contact with 39 men held by Islamic State in Iraq.  Full Article 

Sahara Issue

Sahara Issue

Sahara looks to raise $650 million loan to fund bail.  Full Article 

Bhopal Tragedy

Bhopal Tragedy

Bhopal's toxic legacy lives on, 30 years after industrial disaster.  Full Article 

Banking Sector

Banking Sector

After record deal, more India bank takeovers on cards  Full Article 

Islamic Fund

Islamic Fund

India gets new Islamic equity fund but debt market still off-limits  Full Article 

Cricket Tragedy

Cricket Tragedy

Clarke breaks down giving heartfelt Hughes tribute  Full Article 

Nigeria Violence

Nigeria Violence

Bombs, gunfire kill 81 at crowded mosque in Nigeria's Kano  Full Article 

Movie Review

Movie Review

D’Silva's “Ungli” just skims the surface  Full Article | Related Story 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage