New York
London
Hong Kong
Tokyo
Sydney

Steps taken by RBI to hike money supply

25 January 2011 | by Forex

The Reserve Bank of India (RBI) has announced special measures today for increasing supply of money in the financial system.

This is in a bid to ease liquidity pressure on the Indian banking system due to a spurt in festival season demand.

From Timesofindia.indiatimes.com:

"Scheduled commercial banks may avail of additional liquidity support under the LAF to the extent of up to 1% of their net demand and time liabilities (NDTL) as on the reporting Friday of the second preceding fortnight," RBI said in a statement.

"For any shortfall in maintenance of statutory liquidity ratio (SLR) during November 9 to December 16, 2010, arising out of availment of this facility, banks may seek waiver of penal interest purely as an ad hoc, temporary measure," the central bank said.

The RBI move is expected to bring smiles to investors who have been long waiting for it.

Forex News

Forex Blog

  • Concho Resources To Buy Riverstone All of the oil and natural gas assets of Three Rivers Operating Company LLC, a portfolio company of private equity firm Riverstone Holdings LLC would be purchased by Concho Resources Inc (CXO.N) for... Read More >
  • USD Falls After Disappointing Jobs Data On Friday, the United States dollar fell against the single currency, euro, and the Japanese yen after lower-than-expected U.S. jobs figures bolstered views the Federal Reserve may yet ease the... Read More >
  • Dow And S&P End Lower For Four Days On Monday, the Dow Jones Industrial Average and S&P 500 end lower for four days s investors took their cues from the disappointing jobs report last week that prompted fresh concerns about the U.S... Read More >
  • China Surprises With Trade Surplus In the month of March, China returned to an export-led trade surplus of $5.35 billion. This indicated that a rebound in the global economy is lifting overseas orders just in time for compensating for... Read More >
  • U.S. Jobs Data Brings Fall For Shares On Monday, global stocks and crude oil fell as investors reacted to the surprisingly sharp slowdown in U.S. jobs growth that was reported a week ago. The data raised concerns about the strength of... Read More >
  • Futures Sent Lower By Disappointing On April 6, stock futures closed lower in brief and holiday-thinned trading after a much weaker-than-expected U.S. job growth for March report. S&P 500 futures fell 1.2 percent to suggest a weak... Read More >

Related Blogs :

Disclosure & disclaimer : information available on this site is for informational purposes only and not to be constructed as specific trading advice. Responsibility for trade decisions is solely with the reader.
This material may not be published, broadcast, rewritten or redistributed, unless authorized by the editor. It,s Ratings accepts no liability for the comments content.
The authors of the commentaries are made responsible for their contents.

© 2006-2010 Forex Broker Rating - Top Rated Forex Brokers