Rupee will find level, stabilise soon: Rajiv Takru

Speaking to CNBC-TV18, financial services secretary Rajiv Takru said that he doesn’t expect the RBI’s tightening steps to stay for long, and the rupee will find its level and stabilise soon.

Also read: RBI steps to last till Aug; rupee won't gain more: Experts

Takru said, “There were a lot of people indulging in speculation which the Reserve Bank has tried to curtail. We are not expecting this to continue indefinitely. I’ve spoken to a large number of bankers, the general feeling is that it is likely to stabilise soon. It will find its own level and perhaps that will be the time when we can sit down and take a whole view of the situation.”

Speaking to CNBC-TV18, if the finance misnitry will change the advisory to PSU banks on cutting rates now that the RBI has tightened rates, Takru, says, “I don’t think we have compelled anybody to do anything. The assumption that all banks had decided to cut their base rates is also not a fair decision because there are certain banks which have cut and certain banks have still not cut rates, and they are obviously examining it. Every bank has to make a decision based on its cost of funds. So, banks would ultimately decide on the basis of their balance sheet. We are not pushing them in any direction. ”

On a probable rethink on certificates of deposits (CD) given the fluid economic situation, Takru adds, “The situation at the moment is so dynamic that I would say absolutely nothing which is either advisory or in the nature of a direction – we don’t normally give directions – in the nature of advisories can be taken to be can't be taken to be written in stone. So, as far as we are concerned there is nothing written on stone, but left to me I would say that I would emphasise resorting to retail deposits much more than the CD route but that’s a matter of opinion.”