Thursday, May 22, 2014

Monetary relics

.....For a start, the RBI could remove the SLR/CRR obligations on long-term bonds or deposits raised by banks to fund infrastructure projects. This is especially relevant in an economy in dire need of big-ticket investments. Given that infrastructure already accounts for over a third of all outstanding loans by banks to industry — not to mention a significant portion of their stressed assets — banks may well be reluctant to lend further ............

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