‘India not to be impacted by cash-strapped Greece’

Chennai, July 2 (IANS) India’s exposure to cash-strapped Greece is very limited. however, the central government is in talks with the central bank to offer additional capital to public sector banks, a Reserve Bank of India (RBI) official said.

Greece has just defaulted on payments to the International Monetary Fund (IMF).

“The country has very limited exposure to Greece that is facing a crisis and will not be impacted much,” RBI Governor Raghuram Rajan told reporters here.

He said there may be some impact due to foreign exchange rates but India’s foreign exchange reserves are healthy.

Rajan added that India is attractive for foreign investors given the opportunities, while the global economy is on the road to recovery.

He said the central government has to carry out the reform process fast and the process of appointing new heads for public sector banks will be completed soon.

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