Inflation will come down by March 2012: RBI governor | business | Hindustan Times
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Inflation will come down by March 2012: RBI governor

business Updated: Nov 30, 2011 19:52 IST

Inflation will come down by March on the back of strengthening agro-based economy in the country, Reserve Bank of India (RBI) governor D Subbarao said in Dungabori on Wednesday.

"Inflation will come down because the production and agriculture sectors will boost up the rural agro-based economy of the country," Subbarao said at a RBI Financial Outreach Programme here in central Assam's Morigaon district.

The Indian economy is stable and will grow despite the global economic slow down, the RBI governor said.

Proper coordination of farmers' loan recovery was the only way out to strengthen the agro-based economy of the country as well as the North East region, he said.

Subbarao said that by March 2012 every village with a population of over 2000 people in the country will get a bank.

On the need for financial inclusion, he advised the controlling heads of banks to realise that there exists tremendous business opportunity at the bottom of the pyramid.

Financial inclusion aims at providing basic services to all with access to savings or current account, loans, insurance services.

The RBI Governor also urged the rural population not to be lured by the offer of high rates interest on their money by unauthorised bodies.

He appealed the students, farmers and self-help groups (SHG) to work for better financial coordination and literacy in society.

One of the main purposes of conducting this Financial Outreach Programme was to spread awareness of the importance of financial inclusion, and the financial services and products available in the banking sector, Subbarao said.