Reserve Bank on Monday said it is committed to providing adequate liquidity in the financial system.
"Basically, as the measures announced on Saturday show that given the international situation and situation here, RBI is committed to provide adequate liquidity in all the markets," RBI Deputy Governor Rakesh Mohan told reporters in New Delhi.
He said since September 16 and until now RBI has been acting on a consistent basis to make sure that the Indian financial market works efficiently and adequate liquidity is available in the system.
RBI actions also aimed at insuring smooth credit flow, Rakesh Mohan said.
In order to ensure more liquidity for the real estate sector, RBI on Saturday allowed the registered housing finance companies to raise short-term funds from overseas markets.
RBI had also raised the time-limit for availing low-cost export (pre-shipment) credit from 180 days to 270 days to encourage exports and had promised to take more measures if necessary.
In addition, the central bank had also permitted the Indian banks to offer better interest rates for foreign currency deposits by the non-resident Indians.
In the last one month, RBI has injected liquidity to the tune of Rs 2,70,000 crore (Rs 2,700 billion) by cutting the Cash Reserve Ratio by 350 basis points and Statutory Liquidity Ratio by 100 basis points.
It has also reduced the short term lending (repo) rate by 150 basis points to 7.5 per cent from earlier level of nine per cent, last month.
However, there has been demand from the bankers to lower the interest rates further.
On Sunday, CII chief and ICICI Bank chairman K V Kamath said that the key policy rates could be lowered to boost confidence of India Inc and spur growth.
The country's largest lender SBI had also pitched for further lowering of key policy rates by RBI to kick-start the economy.
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