RBI deputy: monsoon forecast is optimistic

MUMBAI - India's monsoon forecast is optimistic, K.C. Chakrabarty, one of the deputy governors at the Reserve Bank, said on Monday.

The summer monsoon is likely to be normal this year, the government said on Friday, allaying fears over an event crucial to the economic fate of the world's second-most populous nation.

When asked about teaser rates offered by banks Chakrabarty said the central bank has no problem with these rates but banks and customers must understand the risks.

Teaser rates are special lending rates offered by banks to attract customers and are usually well below prevailing market lending rates and have a reset clause after a certain period, usually three years.