Although the country's economy witnessed an average growth of almost 7 percent over the last 25 years, Rajan said that the growth has not benefited all sectors or people
Experts feel that income support schemes may be a more effective alternative and bold steps are needed to address rural distress.
Former RBI governor Urjit Patel had pointed out that loan waivers often result in higher than budgeted revenue expenditure.
International benchmark Brent crude oil futures were at $60.99 per barrel at 0630 GMT, down 46 cents, or 0.8 percent, from their last close.
In every state election during the last five years, loan waiver promise made by one political party or other. The recently concluded assembly election in five states, agriculture loan waiver and increasing minimum support price (MSP) of cereals was again part of manifesto of some of the political parties.
India's equity risk premium has gone up from 2.9 percent in November this year to 3.4 percent in the first week of December
The "tankan" survey showed sentiment remained flat at 19 for a second time after three quarters of decline.
The WPI is a marker for price movements in bulk buys for traders and broadly mirrors trends in shop-end prices
This is the first board meet chaired by the newly- appointed Shaktikanta Das, who took over as the 25th governor on Wednesday.
The economic principles, moreover, say savings should not be used for current consumption, but for long-term investment, he said on Thursday.
The slowdown in Chinese industries has started to weigh on consumer sentiment this year, tapping the brakes on retail sales.
The government should incentivise all banks to take up activities it thinks desirable, not impose it on a few, especially as the privileges associated with a banking license diminish, he said.
An economic slowdown could be bad news for India. It could stymie the nascent recovery in gross fixed capital formation (GFCF) seen in the last couple of quarters
Weaker industrial output and retail sales growth in November showed that downward pressure on economy is increasing, the bureau's spokesman Mao Shengyong said.
Lending, at the end of the day, should be a commercial decision and is a sole prerogative of the individual entities, it is better left that way in the broader interest of the system
Trump last met his Chinese counterpart Xi Jinping in Buenos Aires on the sidelines of the G-20 Summit in Argentina on November 30 and December 1.
Rice added that the IMF had "taken note of" Urjit Patel as the governor of the RBI and the appointment of Shantikanta Das as his replacement.
Chidambaram also hoped that Das stands up to the autonomy and rights of the RBI.
Some political analysts and government officials label him as authoritarian. They say such autocracy is a dangerous game in India given the complex ethnic, religious and caste divisions among its 1.3 billion people.
The meeting will review the progress with respect of some of the decisions taken in the last meet on November 19. Among other things, the crucial board meeting is expected to take a stock of Micro, Small & Medium Enterprises (MSMEs), which is under stress due to demonetisation and implementation of the Goods and Services Tax (GST).
Kant also noted that the private sector will play a major role in pushing the country's economy towards the ambitious $5-trillion target.
Newly-appointed RBI Governor Shaktikanta Das' comments that he will take all stakeholders along on key issues also bolstered sentiment, analysts said.
The FM pointed out that the country's first prime minister Nehru had written to the RBI stating that the economic policies are determined by the elected government, while RBI has autonomy over the monetary policy.
Bank-promoted insurers saw a huge jump in the average ticket size of the policies sold to retail customers
While addressing a CII conference here, the minister said the domestic market also holds enormous potential for textiles industry.