SEARCH

Business » Economy

Updated: November 22, 2010 17:53 IST

Potential liquidity available in system: RBI

PTI
print   ·   T  T  
Deputy Governor of Reserve Bank of India Shyamala Gopinath. File photo:Vipin Chandran
The Hindu
Deputy Governor of Reserve Bank of India Shyamala Gopinath. File photo:Vipin Chandran

In the wake of recent concerns over a liquidity crunch in the system, Reserve Bank of India Deputy Governor, Shyamala Gopinath, on Monday said there is a “potential liquidity” available in the system.

The Central Bank’s recent liquidity infusion moves like the second LAF (Liquidity Adjustment Facility) and the second one per cent below SLR (Statutory Liquidity Ratio) have given confidence to market participants, she said.

“That has given a lot of confidence to them...there is so much more potential liquidity in the system,” Ms. Gopinath said, speaking on the sidelines of the launch of interbank mobile payment service here.

When pointed out that banks are drawing over Rs. 1 trillion everyday for around a month from the Reserve Bank as compared to the usual Rs. 700 billion and are not using the SLR facility, she said, “If they have not drawn from the one per cent SLR as you say, it means that there is potential liquidity available in the system for the banks to draw if they require it.”

Ms. Gopinath further said that the RBI has been monitoring the liquidity situation.

RBI Deputy Governor, Subir Gokarn, had recently indicated the Central bank is concerned over the excess deficit in liquidity, which has crossed the Rs. 50,000 crore comfort zone which it has set for itself.

More In: Economy | Business

Commodity prices

Take a look at the prices of various commodities in Chennai here»


O
P
E
N

close

Recent Article in Economy

Spectrum auction gets bids worth Rs.65,000 cr at end of Day 2

The maximum bids of 106 rounds were received for the Kerala circle for the 900 MHz band. »