Room for a CRR cut, reduction in SLR not practical, says Gokarn

………..Gokarn said open market operations (OMOs) had limited capacity to address the liquidity deficit, which was quite large. “The market absorption capacity also has to be taken into account.“If SLR holdings were close to the limit, a reduction in the SLR would have been useful. Now, there is no practical value to it,” he said, adding skewed excess SLR was not a concern, as banks with surplus liquidity were lending to needy banks through the call money market.………..

Read...................