Rediff.com  » Business » Will take steps to address tight liquidity: Deputy Guv RBI

Will take steps to address tight liquidity: Deputy Guv RBI

By Shamik Paul
May 28, 2013 15:47 IST
Get Rediff News in your Inbox:

The Reserve Bank of India is likely to take steps to address the tight liquidity situation in the banking system, Deputy Governor H.R. Khan said on Tuesday.

The RBI was making an assessment on the liquidity situation, Khan told reporters on the sidelines of a central bank event, responding to

a question on the timing of open market operations.

The deputy governor also said the government's cash balance was "quite substantial", which is an indicator of excess idle money with the government, outside of banks.

The current liquidity shortage is reflected in the RBI's repo borrowing window, where banks on an average have borrowed close to a trillion rupees over the last four days.

Get Rediff News in your Inbox:
Shamik Paul in Pune
Source: source
© Copyright 2020 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
SHARE THIS STORY 

Moneywiz Live!