RBI to take steps if cash shortage persists - deputy governor

MUMBAI Tue Nov 27, 2012 11:44am IST

People walk in front of the Reserve Bank of India (RBI) building in Kolkata May 21, 2012. REUTERS/Rupak De Chowdhuri/Files

People walk in front of the Reserve Bank of India (RBI) building in Kolkata May 21, 2012.

Credit: Reuters/Rupak De Chowdhuri/Files

Related Topics

MUMBAI (Reuters) - The Reserve Bank of India will take measures to address liquidity deficit if the shortage persists, said H.R. Khan, the central bank's deputy governor.

Khan was speaking on the sidelines of the Asian Financial Cooperation Conference on Tuesday. He added the central bank can go for open market purchases of bonds if needed.

Liquidity has tightened in the banking system and is beyond the RBI's stated comfort zone, mainly due to the slow pace of government spending.

Banks have been borrowing more than one trillion rupees daily through the RBI's repo window since the last nine sessions. (Reporting by Suvashree Dey Choudhury; Editing by Prateek Chatterjee)

FILED UNDER:

Economic Pulse

Reuters Showcase

S&P on Budget

S&P on Budget

Budget shows commitment to keep fiscal deficit low  Full Article | On Ratings 

PMI Data

PMI Data

Factory activity growth slows to five-month low in Feb  Full Article 

Fitch on Budget

Fitch on Budget

India's "less aspiring" fiscal consolidation strategy negative for ratings  Full Article 

Monetary Policy

Monetary Policy

Two policymakers see case for RBI rate cut - report  Full Article 

China Economy

China Economy

China Feb HSBC PMI at seven-month high but more rate cuts seen on the cards  Full Article 

Battling Apple

Battling Apple

Samsung unveils sleek new Galaxy phones  Full Article 

Moody's on Budget

Moody's on Budget

Budget "credit neutral" from a ratings perspective  Full Article 

On Rate Hike

On Rate Hike

Insight: Near Fed majority backs June liftoff Yellen hasn't yet endorsed  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage