Kolkata: In a bid to stabilize economy amidst euro zone crisis, Reserve Bank of India will step forward to contain volatility in rupee. RBI also said that they might intervene the market in order to reduce instability in the exchange rate.

RBI Governor Duvvuri Subbarao said that the rupee volatility has become a cause of concern for the last three months. In the wake of reduced capital inflows in the country, the rupees faced a setback in the foreign market exchange.

This year, rupee has been declined by 14 percent, which is the worst performance in the entire Asian currencies.

Subbarao said that, the country needs more long-term investments to contain rupee volatility. He said that the central bank has tried to contain the situation by adjusting the maximum interest rate for NRI deposits, increasing the limits for companies.

“We will take all necessary steps to handle rupees,” Subbarao added.

It would be totally depending on the RBI policies whether to intervene the market or not. To reduce the exchange rate and economic instability, RBI might intervene in the market.

To decrease the Cash reserve ratio (CRR), the Reserve Bank asked to wait till the mid-quarter review. The central bank will issue quarterly review on December 16.

Subbarao said that the bank debt in West Bengal has increased by 62-65 per cent. The credit demand by the Industries in Bengal is low. He also said that after reviewing four districts in Bengal, we came to know that most of the farmers are under the credits category. There will be an increase of Rs one crore 20 lakh in the next financial year as state debt.

(JPN/Bureau)