India, June 6 -- The Reserve Bank of India (RBI) Governor Sanjay Malhotra on Friday said a projected deficiency in the south-west monsoon could impact rural demand and private consumption, though mitigation measures are expected to cushion the effect. During the post-monetary policy conference, Malhotra said rural demand and private consumption have remained healthy so far but acknowledged that some moderation may be inevitable. "Rural demand, yes; private consumption, yes. Some impact will be there," the governor said while replying to a specific question on the issue.

Malhotra said the projected deficiency in the south-west monsoon may have implications for agricultural production and demand in rural areas.

"Additionally, the projecte...