Saturday, December 10, 2011

Subbarao acknowledges cash crunch facing banks

.........Reserve Bank of India governor Duvvuri Subbarao on Thursday said there are liquidity constraints across the system. His comments came amid growing concerns that domestic liquidity condition will remain stretched for some time more.Interestingly, Subbarao’s comments came close on the heels of RBI deputy governor Subir Gokarn on Wednesday reportedly indicating that the apex bank will refrain from cutting the amount the banks need to set aside as reserves...............

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