RBI releases the Report of the Internal Working Group to Review the Liquidity Management Framework - ಆರ್ಬಿಐ - Reserve Bank of India
RBI releases the Report of the Internal Working Group to Review the Liquidity Management Framework
1. As announced in the Statement on Developmental and Regulatory Policies of June 06, 2019, an Internal Working Group was mandated to review the current liquidity management framework with a view to simplifying it and suggest measures to clearly communicate the objectives and the toolkit for liquidity management. The Group has since submitted its report. 2. The Group has articulated guiding principles for an effective liquidity management framework. Some of the major guiding principles are: the liquidity framework should be guided by the objective of maintaining the call money rate close to the policy rate; it should be consistent with the policy rate; and it should not undermine the price discovery in the inter-bank money market. 3. Based on the guiding principles, the Group has made the following key recommendations:
4. The report is placed on the RBI website today for comments of stakeholders and members of the public. The liquidity framework shall be finalized taking into account the recommendations of the Group and the public feedback. Comments on the report may be sent by October 31, 2019 through email. Yogesh Dayal Press Release : 2019-2020/796 |