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Indian cbank chief says govt in talks over capital for lenders
[CHENNAI, India] The Reserve Bank of India Governor Raghuram Rajan said the government was in talks with the central bank about injecting capital to lenders, while noting it was important to ensure funding for infrastructure projects remain on track.
Turning to the ongoing Greece situation, Rajan said India's direct exposure to the country was "very, very" limited. He said he hoped foreign investors would be attracted to India nonetheless given growth prospects, and given foreign exchange buffers were healthy.
Still, Mr Rajan noted that the central bank needed to be careful about relying on foreign investors to finance government or corporate bonds markets, though he was committed to a steady expansion of overseas money in the country's debt.