Noting that the RBI has been approached by banks for mandatory liquidity exemption for infrastructure bonds, Chakrabarty hinted that this may not be allowed as there is a possibility similar demand may come for other instruments as well.

Banks have been urging the apex bank to exempt the bonds they issue to raise money to lend to the infrastructure sector from the mandatory liquidity requirement.

On banks offering cheaper home loans (teaser), as low as at 8 per cent to woo borrowers, Chakrabarty said this benefit should be extended to the existing customers as well.

"We have no concern on teaser rates... You (banks) tease both new and old customers...Don't leave only one segment," said Chakrabarty.

Another RBI deputy governor Usha Thorat had recently said the banking regulator was concerned on teaser rates and that banks must ensure that borrowers would be able to service the rates after the offer period.

The current level of inward capital flows, Chakrabarty said, did not pose any major concern to the regulator as it can be absorbed by the market. "Up till now, capital flows are managed by the market. We feel that there is no problem to manage this kind of capital flows," said Chakrabarty.

On the intervention of the Competition Commission on banks loan prepayment penalty issue, he said banks will have to reach an agreement on the matter and hinted the apex bank intervention is unlikely. "We don't come into the picture there," Chakrabarty added.