Financial system ‘is still strong'

Our Bureau Updated - November 15, 2017 at 04:49 PM.

Indian financial system is still strong, according to Dr K.C. Chakrabarty, Deputy Governor, Reserve Bank of India.

Speaking to newspersons on the sidelines of a seminar on financial inclusion here on Thursday, he said the internal assessment of RBI showed that there was nothing to worry.

Global rating agency Standard and Poor's had cut India's outlook to ‘negative' from stable on account of tardy fiscal progress and deteriorating economic indicators.

“But, let us complete all the diagnosis of the economy and announce the outcome in June,” he said.

While refusing to comment on the impact of S&P downgrade, he said RBI's intervention in currency markets would depend on level of volatility.

The markets, have already discounted the impact of what S&P had said, he added.

When asked on the potential risks to the economy, the Deputy Governor said all risks were internal.

“The only solution is working hard. This applies to everybody, including me,” he added.

> nagsridhu@thehindu.co.in

Published on April 26, 2012 11:16