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)
Trending On Reuters
A Nepali police team has pulled out the bodies of about 50 people, including some foreign trekkers, from an avalanche-hit area, officials said on Sunday, as the death toll from last month's devastating earthquake climbed to over 7,000. Full Article | Graphic
- Monsoons could bring disease, a second crisis, to Nepal - UNICEF
- Insight - Soul-searching over quake ends Everest climbing season
- Video: Relief goods for Nepal quake victims held up, remote areas awaiting aid
- Pictures: Nepal struck by a devastating earthquake
- Video: U.S. ready to provide more support to Nepal, says Kerry
Free medical for in-laws helps Indian tech start-ups woo talent back from America Full Article