Reserve Bank of India governor Bimal Jalan said on Saturday the bank would maintain its soft monetary policy.

"As of now it is continuing," Jalan said, when asked whether the central bank would continue with its soft interest rate policy.

Earlier this month, the central bank cut its key repo rate by 50 basis points to five per cent - its third reduction this fiscal year to March - after the government announced it was lowering returns on some savings schemes by a percentage point.