Sensing a critical need to make its monetary policy effective, the Reserve Bank of India (RBI) has presented a detailed report of an Internal Working Group (IWG), which suggests a sweeping revision of the current liquidity management mechanism. The recommendations are intended to deal with ongoing problems related to managing the short-term interest rates, and providing more stability on the financial markets. This review is taking place at a time when turbulent government cash balances and an uncertain foreign currency forecast have challenged RBI to control systemic liquidity that is vital in relaying policy rate transitions to the rest of the economy.
Month: Current Affairs - August 25, 2025
Category: current affairs daily