‘Industry for more government measures to improve liquidity’

November 3rd, 2008 - 5:37 pm ICT by IANS  

Manmohan SinghNew Delhi, Nov 3 (IANS) Though the government has taken some steps to infuse liquidity into the country’s cash-starved financial system, India Inc is looking for more such measures that will keep the economy going, Bharti Airtel chairman and managing director Sunil Bharati Mittal said here Monday.“The moves have already been made by introducing CRR (cash reserve ratio) cut, ATF (aviation turbine fuel) duty cuts… the question is how many more steps are required to keep the economy moving,” he told reporters.

The Reserve Bank of India (RBI) Saturday slashed the repo rate by 50 basis points to 7.5 percent, the CRR by 100 basis points to 5.5 percent and the statutory liquidity ratio (SLR) by 100 basis points to 24 percent in a bid to lower the cost of borrowing for households and industry and infuse additional liquidity worth Rs.400 billion.

The repo rate is the interest charged by the central bank on borrowings by commercial banks, the cash reserve ratio is the minimum cash they have to retain, while SLR is the amount that these institutions have to maintain as government securities.

Speaking on Prime Minister Manmohan Singh’s meeting with industry heads Monday morning, Mittal said Singh gave an assurance that his government was fully behind the industry to carry on the growth momentum.

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