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Journalism of Courage
India may not take further steps to infuse liquidity in the banking system in next 7-10 days as the cash situation has improved following a series of moves by the Reserve Bank of India RBI, a finance ministry official said on Friday.
8220;The current liquidity situation is adequate and there is no need for more liquidity infusion over the next 7-10 days,8221; said the official, who did not wish to be identified.
8220;There was a headroom in the cash reserve ratio but we cannot go on cutting CRR indefinitely.8221;
The central bank cut the CRR twice in a week, slashing it by 250 basis points to free up 1 trillion rupees 20.5 billion in funds.
State-run banks have headroom for raising Tier-II debt up to 770 billion rupees, the official said, without giving a timeframe.
