No single data point or number will determine the Reserve Bank of India’s next move in policy announcements, Governor Raghuram Rajan said here on Friday.

“I think the market understands what we are trying to do. But we do need a more carefully spelled out monetary policy framework than we have currently. Action on the framework will follow the submission of the Urjit Patel Committee report, expected by end December, Dr. Rajan said while speaking at BANCON here.

Going forward, Dr. Rajan said, “In the coming months, we will discuss with stakeholders in public sector banks about what needs to be done to further improve their stability, efficiency and productivity.” He told bankers to build on their risk management capabilities so that they could use markets effectively. In the coming weeks, “we will roll out more recommendations to improve the liquidity and depth of the government securities (G-Sec) market. We will then turn to money markets and corporate debt markets. We will introduce new variants of interest rate futures and products like inflation indexed certificates, and work to improve liquidity in derivative markets,” the Governor said.

On inclusive growth, Dr. Rajan said, “financial inclusion does not just mean credit for productive purposes, it means credit for healthcare emergencies or to pay lumpy school or college fees. It means a safe means of remunerated savings, and an easy way to make payments and remittances. It means insurance and pensions. It means financial literacy and consumer protection. We have made great strides in inclusion, but we are still some distance from our goal.”

In the next few weeks, said Dr. Rajan, “we will announce measures to incentivise early recognition, better resolution and fair recovery of distressed loans. We will focus on putting real assets back to work in their best use.”

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