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Retail loans for festive season to be announced soon: Rajan

Reserve Bank of India (RBI) Governor Raghuram Rajan speaks during a news conference after the mid-quarter monetary policy review at the RBI headquarters in Mumbai September 20, 2013. REUTERS/Danish Siddiqui/Files

RAIPUR, India (Reuters) - Reserve Bank of India (RBI) governor, Raghuram Rajan, said the government was in talks with the bank to decide the contours of a package for retail investors for the festive season, which would be announced soon.

Rajan was speaking in Raipur after the RBI's board meeting on Friday.

Indian banks will offer cheaper loans to stimulate demand for two-wheelers and other consumer durables as Finance Minister P. Chidambaram tries to pull the economy out of the worst slowdown in a decade ahead of national elections due by next May.

(Reporting by Suvashree Dey Choudhury; Editing by Subhranshu Sahu)