The Reserve Bank of India (RBI) might look at a possible rate cut if factors leading to lower inflation continue to persist, its Deputy Governor, SS Mundra, said here on Wednesday.

According to him, the latest monetary policy indicated that deflation at this point will be “quite encouraging” because of global factors such as low oil and commodity prices and softening of food prices.

“So, that is why we indicated that if all of these remain same, then there will be room for softening of policy stance,” he told reporters on the sidelines of a seminar organised by the Confederation of Indian Industry (CII).

The comments come ahead of consumer inflation data (for November) due on Friday (December 12). Inflation based on the consumer price index (CPI) fell to 5.52 per cent in October.

The RBI held interest rates steady earlier this month, but said it could ease monetary policy early next year.

Licences

According to Mundra, the central bank is likely to grant “payments bank” licences to applicants by March or April 2015.

He did not, however, say how many licences the RBI was going to offer.

Payments banks are expected to help expand financial inclusion footprints.

The RBI had detailed the final guidelines for payments bank licences on November 27, and January 16 is the deadline for licence applications.

Mundra said there is no cap on the number of licences that it will offer.

On offering more universal banking licences, Mundra said the regulator was working towards a policy of granting such licences “on-tap” basis.

So far, bank licences have been given during a particular time frame.

Before April 2014, when Bandhan and IDFC were given in-principal approval, , the last banking licences were given to Kotak Mahindra Bank and Yes Bank in 2004.

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