"We still have concerns about inflation. Given the deflationary environment elsewhere, it's actually easier for us because we are not fighting inflation in an environment where inflation is picking up elsewhere," Rajan said in a conference call with analysts.
"So I think we are still in conventional monetary policy territory."
The comments come a day after the central bank held interest rates steady at 7.75 percent, leaving its next move probably until after the government presents its annual budget at the end of this month.