By IANS,
Kolkata: The Reserve Bank of India (RBI) Thursday said it will unveil more measures to ease the cash flow into the banking system, but contended that the liquidity shortage was not a destabilising factor for the market.
“We were expecting that government cash balances will come down, that the government will spend, and that would ease the liquidity situation,” RBI governor D. Subbarao told mediapersons here.
“The government has started spending, (but) that has not been large enough to ease the liquidity situation. We are deeply conscious of the liquidity situation,” he said.
Subbarao said the apex bank was studying the issue. “We will take some measures as may be needed,” he said, but did not give any details or a timeframe.
“But what we see is a liquidity shortage and not any destabilising factor for the market,” the RBI chief added.