RBI deputy Gokarn says still room for CRR cut

There is still room for the Reserve Bank of India (RBI) to cut the cash reserve ratio (CRR) for banks, RBI Deputy Governor Subir Gokarn said in an interview on CNBC-TV18.

"When the space opened up for CRR cut, we used it," he said. "That space still exists, and so if we think it is appropriate we will use it."

The RBI cut the CRR, or the proportion of deposits that banks must maintain with the central bank, by 50 basis points to 5.5% on January 24 but kept its key policy rate unchanged.

The RBI will next review monetary policy on March 15.

The CRR cut in January is estimated to have released 320 billion rupees into the banking system.

Below is the edited transcript of the interview. Also watch the accompanying video.

Q: We are speaking to you for the first time after that GDP number of 6.1%. Now do you think a 7% GDP number looks a little tall for the current year?

A: Well, I think the numbers, looking at even traditional experience, tend to get adjusted, and this 6.1% particularly reflects the very weak showing we had on the IIP in the October-December quarter. There maybe an upward revision to it because that