MUMBAI, India — India's new central bank chief has kicked off his first day in office by announcing measures to stabilize the country's troubled economy and tumbling currency.
Raghuram Rajan acknowledged he is taking over the Reserve Bank of India at a tough time but insisted Wednesday that India has "a fundamentally sound economy."
He announced in a televised speech that existing banks would be able to open new branches without RBI permission and said new banking licenses would be issued by January. He also said the central bank would issue inflation-indexed savings certificates.
Rajan takes control of the central bank amid fears of a currency crisis. India's economic growth slowed to 4.4 percent in the April-June quarter and the Indian rupee has lost more than 20 percent of its value since May.
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