Montek on why RBI measures were necessary

The short-term measures taken by the Reserve bank of India to curb rupee liquidity are necessary for growth and will not make a significant difference to the long-term rates, the deputy chairman of the country's Planning Commission Montek Singh Ahluwalia told TV channel CNBC-TV18 on Tuesday.

"I would hope that when stability is restored, the RBI will be able to wind out this intervention," Ahluwalia said.

The Reserve Bank of India announced measures late on Monday to curb the rupee's decline by tightening liquidity and making it costlier for banks to access funds from the central bank.