RBI to fine tune liquidity operations whenever needed

Date:

The Reserve Bank of India (RBI) will fine tune liquidity operations from time-to-time, when needed, Governor Shaktikanta Das said on Tuesday.

Addressing the FIMMDA-PDAI Annual Conference, he said that the Reserve Bank will endeavour to ensure adequate liquidity in the G-sec market as an integral element of its effort to maintain comfortable liquidity conditions in the system.

“In order to facilitate this process as markets settle down to regular timings and functioning and liquidity operations normalise, the Reserve Bank will also conduct fine-tuning operations from time to time as needed to manage unanticipated and one-off liquidity flows so that liquid conditions in the system evolve in a balanced and evenly distributed manner,” he said.

Noting that government securities are a distinct asset class, Das said that it is important to appreciate the role the G-sec market plays in the overall macro interest rate environment of the economy.

Over the years, the market for G-secs and the associated market infrastructure have reached a stage where it could be considered as one among the best in the world, he noted.

These developments have taken place in tandem with efforts to develop and liberalise other key financial markets such as the markets for interest rate derivatives and foreign exchange markets, together with efforts to build linkages across different markets and market infrastructure, the RBI Governor said.

“We have come a long way in developing the financial markets in the country, but this is a continuous journey and together we can make it even more robust and vibrant.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

spot_img

Popular

More like this
Related

“Exciting News: Samantha’s Latest Series Now Available to Stream!”

Tollywood star heroine Samantha is back to entertain audiences...

“Pushpa-2 Update: Is That Iconic Song In or Out?”

The excitement around icon star Allu Arjun’s latest movie...

“Unexpected Twist: Are Pushpa 2 Rumors Becoming Reality?”

Icon stars Allu Arjun and Rashmika Mandanna return as...

“Latest Update on ‘Lucky Bhaskar’ OTT Release Date!”

Malayalam star Dulquer Salmaan's latest film, Lucky Bhaskar, is...