RBI highlights bad debts as it holds rates

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RBI: stressed assets are a drag on the economy

The Reserve Bank of India (RBI) kept its policy rate steady today (February 8), citing a determination to keep inflation down, and highlighted the high levels of non-performing assets (NPAs) in Indian banks, which it says are impairing transmission. All six members of the monetary policy committee (MPC) voted to hold the policy rate unchanged at 6.25%, surprising many analysts, who had expected a cut. A central concern is that while headline inflation has been subdued thanks to low vegetable