The issue of black money remains a concern for the government as well as for the banks. Reserve Bank of India announces that it has limited powers to deal with black money issue.

There is a confidentiality clause that is blocking their path to handle with the problem of money kept in bank lockers.

RBI Governor D Subbarao said that prevailing rules does not permit banks to check the lockers and find out what is kept in the lockers. He said that nothing can be done about this confidentiality clause.

He further said that RBI has no role to play in the Union budget and it stood for monetary consolidation of the banks.

He was in the city for two days and said that apex bank was skilled enough to balance the financial growth and control the inflation which is a tough job and has handled the situation efficiently.

The rise in inflation is due to many forces and factors, especially with the rising prices for food, commodity and oil and the current situation in West Asia is also contributing to the inflation.

Foreign Direct Investments (FDI) has declined in last few months and RBI is concerned with this decline, said Subbarao. He also said that earlier it was anticipated that oil prices will not go beyond USD 90 barrel but it has already crossed USD 100 a barrel this year.