To stimulate the economy, we will probably be able to cut the key policy rate further during the current year. Through prudent monetary policy, we have ensured price stability for several years running, in line with our mandate as a central bank. In other words, inflation has been low and stable and will remain within the target range of 5% +/- 1 pp.
Minimum capital requirements The minimum capital prescribed in the Banking Regulation Act for banks is too low and Reserve Bank is prescribing the minimum capital requirement in case of private sector banks from time to time (currently banks should have a minimum networth of Rs. 300 crores).