Source: News Bharati English11 Feb 2017 16:02:26

New Delhi, February 11: Finance minister Arun Jaitley on Saturday said that he expected the RBI (Reserve Bank of India) to cut interest rate but respect its decision to hold status quo. Replying to a question regarding the cut of interest rates by RBI Jaitley has said that all Finance Ministers have perpetual desire to cut interest rates but respect RBI decision.Briefing media in New Delhi after RBI Board meeting, he said electoral bonds for political funding will be announced after holding discussion with RBI.  RBI governor Urjit Patel replying to a question on demonetisation, said disclosure about demonetised currency deposited should be verifiable number in physical and accounting sense.

He said care should be taken as the final numbers will be divulged after 30th June, the day when all windows for depositing old notes will be closed. On interest rates, the RBI governor said there is scope in reduction in lending rate.

One of the board members did ask some question with regard to clarification on what government had in mind. And I have explained what the government has in mind with regard to the electoral bonds,  he added.

Meanwhile, RBI for the second time in a row in its review earlier this week opted for a status quo awaiting more clarity on inflation trend and impact of demonetisation on growth even as it hinted at no interest-rate cut in immediate future by shunning its long-held “accommodative” monetary policy stance.