The withdrawal of monetary accommodation in India should be feasible without adverse impact on specific market segments, said Deepak Mohanty, an executive director of the country's central bank.

Mohanty said the central bank's liquidity injections were achieved without compromising either on the eligible counterparties or on asset quality. Moreover, the balance sheet did not significantly increase in size, unlike that of several other central banks, he added.

Mohanty also said the central banks