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RBI to address shortage of liquidity in the economy

Updated: Jan 08, 2019 07:23:28am
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RBI to address shortage of liquidity in the economy

New Delhi, Jan 8 (KNN) The central bank will take steps if there is a shortage of liquidity in the economy though the current cash needs are largely met, said Shaktikanta Das, Governor, Reserve Bank of India (RBI).

He said this in a meeting with the Micro, Small and Medium Enterprises (MSME) representatives.

The governor also said that he will be meeting with representatives of non-banking finance companies (NBFCs) in Mumbai to understand the liquidity crunch faced by the sector. 

Das said that the RBI will take steps whenever there is any deficit.

Adding to it he said, "At the same time, I must also add the RBI would not like a situation where liquidity becomes a kind of loose money. Any infusion of liquidity will have to be carefully considered and has to be need-based.”

"Therefore, caution and care have to be exercised by the RBI so that excess liquidity, sometimes have adverse consequences, that is not create he told reporters here after meeting representatives of MSMEs,” he mentioned.

"We do believe that the liquidity requirement of the economy and financial institutions to a great extent is met," he said.

On meeting with the NBFC sector, Das said the RBI will have detailed interaction with stakeholders. 

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