MUMBAI: With foreign exchange reserves rising by a whopping $11.9 billion during the week ended September 28, bankers feel RBI should think out of a way to tackle excess liquidity flows instead of another hike in the cash reserve ratio (CRR) or the market stabilisation scheme (MSS).
While CRR is a percentage of bank deposits in cash to be kept with RBI to help it control liquidity in the system, MSS is borrowing by government to drain out liquidity.
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Monday, October 8, 2007
Bankers expect new tool from RBI to suck out liquidity
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