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Interest Rates Not To Be Raised Immediately: Banks

By SiliconIndia   |   Tuesday, July 30, 2013
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Bangalore: K R Kamath, Chairman of Indian Banks' Association confessed that there was an increasing demand to raise the interest rates. This happened when the foreign exchange markets were unstable, which affected the exporters.  

However, Kamath continued to say that, as the Indian currency is recovering with the values fluctuating between Rs.58.80 and Rs.59 per Dollar, there is no need for increase in interest rates either for lending or on deposits, reports Reuters.

Kamath has further informed the RBI that maintaining cash reserve ratio on a daily basis at 99 percent is complicated.

With no changes applied to the interest rates, the cash reserve ratio (CRR) stands at 4 percent. Infact many bankers feel that there is no need for immediate increase in the interest rates.

Pratip Chaudhuri, Chairman of State Bank of India said that the country can wait for another two to three weeks before deciding on the increasing interest rates.

Moreover, even the RBI accepted to keep the interest rates unchanged considering the bad state of Indian rupee.  RBI at the same time said that they would come back and make changes in the interest rates once the rupee value increases and when the stability returns to the current market.

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