Reserve Bank of India (RBI) requires to maintain the current level of currency reserves keeping in mind international volatility and the need to maintain high creditworthiness, governor Urijit Patel told the Parliamentary Committee on Tuesday, November 28.

According to a report on The Times of India, Patel was quotes as saying, “These reserves are meant "for periods of stress and not for meeting normal needs".

The governor’s comments to the committee are significant as the Modi-led Central government and the RBI were in a bitter battle about the amount to reserves that need to be maintained by the Central Bank.

The governor had appeared in front of a panel to brief the demonetisation and non-performing assets (NPA) situation.