RBI should not look only at inflation: Montek

Ahead of the RBI's quarterly policy review, Planning Commission Deputy Chairman Montek Singh Ahluwalia on Monday said controlling inflation should not be the only target of central banks.

"My feeling is that central banks have to look at multiple targets, central banks should not look only at inflation target...," he said at an event here.

After hiking policy rate in two consecutive policies, the Reserve Bank kept did not change the interest rate expecting that inflation would moderate, among others.

The RBI is scheduled to announce its third quarter monetary policy review on January 28 in the backdrop of industry demand to reduce the key policy rate (repo).

Ahluwalia also pitched for further liberalisation of the country's financial sector.

"We should continue to liberalise. We have to keep in mind, we were responsibly well regulated. We should actively keep liberalising our financial sector...," he said.Recommending sweeping changes in the banking structure, an RBI panel has also suggested setting up of specialised banks to cater to low income households to ensure that all citizens have bank accounts by 2016.