RBI will ensure enough liquidity to support business

RBI will ensure abundant liquidity to support business even as Mint Road’s crisis-era measures are coming to an end, Governor Shaktikanta Das said. While the Ukraine war has created new challenges, the central bank will seek to cushion its economic fallout by going even beyond the playbook, where steps often accompany sunset clauses after bitter lessons from the past.

“Going forward, we will ensure that there is abundant liquidity in the market for the credit system to be active, for the credit system to function normally,” Das said in his address to the CII National Council in Mumbai.

This was his first in-person interaction with the industry since the start of the Covid-19 pandemic.

Das was answering questions from industry captains such as Uday Kotak, Keki Mistry and Rishad Premji, who attended the meeting as members of the CII council. “There will be abundant liquidity to meet the productive needs of the economy. All our schemes have a sunset clause,” Das said. “We will ensure the whole process, the injection of liquidity as well as the withdrawal, is very non-disruptive.”