February 5, 2012: In the banking and corporate world, the word ‘liquidity' is heard quite often. But how does one explain liquidity to a general audience? Former Governor of the Reserve Bank of India, Y.V. Reddy, well-known for his ready wit, had a 300-strong audience in splits when he gave liquidity a new definition at a function held in Hyderabad recently. “For a Central Bank or banks, liquidity means something related to cash reserves, while for a company, liquidity is generally linked to solvency or cash in hand. But in Hyderabad, after 6 p.m., liquidity means beer or whisky,” he quipped. He sure got the point across effectively, though the definition may have been far from accurate.
HBL
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