The present global crisis is the worst in six decades and is likely to bottom out from the year-end with the country's economy emerging safe and sound, said immediate past RBI governor Y.V.Reddy, reports the Economic Times.

He said that it happy situation was due to the regulatory framework and restricted exposure of Indian banks and financial institutions to risky financial products.

Two of his predecessors, C.Rangarajan and Bimal Jalan, agreed with him. Jalan also said that though the policies of RBI were criticized to be extremely conservative, decisions like only- partial capital account convertibility helped overcome the crisis.

Reddy also said that now the country's policies were being praised by the world for their foresight and innovativeness as there were no defaults by banks and their financial health remained sound.

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