Zee Media Bureau
New Delhi: RBI Governor Raghuram Rajan on Monday said that its time that the government should de-regulate the diesel prices in the wake of falling global crude oil prices.
He also said that the falling inflation is consistent with Reserve Bank of India forecast.
Rajan also said there was a need to change the management appointment process in public sector banks to make it more transparent.
The central bank is in talks with the government to improve governance in public sector banks, Rajan told a banking conference. He said problems that have emerged in recent bank scandals were due to outsourced project evaluation.
Rajan also said that India's macroeconomic indicators are improving and inflation has been coming down consistent with the central bank's forecast, but Indian economy needs investment growth to pick up.
Meanwhile, as the fall in international oil rates brings domestic diesel retail price at par with cost, the oil ministry has not yet moved Cabinet for deregulation of the nation's most consumed fuel.
The NDA government has continued with the previous UPA regime policy of raising diesel rates by up to 50 paise a litre every month to bridge the gap between cost and retail prices.
Under-recovery or the gap between retail selling price and the cost of imports, this month dipped to an all-time low of 8 paise a litre, helped by the monthly increases and softening in international oil rates.
The cut in diesel prices will not only help consumers with diesel-powered cars, but will also help bring down inflation in the economy.
With agency inputs
