RBI to take steps if cash shortage persists - deputy governor
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)
- Tweet this
- Share this
- Digg this
- UPDATE 9-Total CEO de Margerie killed in Moscow as jet hits snow plough
- Total CEO de Margerie killed in Moscow business jet accident
- Pistorius jailed for 5 years for killing girlfriend Steenkamp
- Indiana police charge suspect who may have killed for decades
- China's growth slowest since global crisis, annual target at risk
As well as making the lives of millions of middle class Indians easier, the sharp drop in Brent crude prices since June is a boon for Prime Minister Narendra Modi in his fight to revive an economy growing at its slowest rate since the 1980s. Full Article