"We should not be scared of (markets) volatility," Rajan said here addressing a meeting business leaders from G20 countries called the B20 meet, a statement said.

The Reserve Bank of India (RBI) head said finance 'is only a lubricant to growth' and it would be the overall economic policies of the countries that would determine their basic growth momentum, adding the current problems for the global economy include people saving more and spending less, low productivity and low investments.

Rajan also warned that central banks worldwide might have engendered excessive fragility in the system.

When Rajan took charge at RBI in 2013 at a time the US Federal Reserve had declared its intent to wind down its stimulus programme, the rupee plunged in value in respect of the US dollar on fears about a spiralling current account deficit.

In a series of measures, Rajan managed to stabilize the currency that also brought back investors.

 

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