RBI for containing fiscal deficit, checking bad loans

New Delhi, May 20 RBI Governor Raghuram Rajan today said containing fiscal deficit is essential for achieving sustainable growth and underlined the need for developing a “good system” to deal with bad loans in banking sector.

“(Bank) deposits will not continue to be cheap, while the government cannot continue to pre-empt financing at the scale it has in the past if we are to have a modern entrepreneurial economy.