Banking system needs to ensure liquidity in market, says Arun Jaitley

Jaitley's comments come at a time when both the RBI and the government are witnessing a tense relationship that has spilled out in the public

Finance Minister (FM) Arun Jaitley on Sunday called for an enabling environment to improve the credit ability of banks and provide liquidity to the market, at a time when the government has suggested a slew of measures from the Reserve Bank of India (RBI) to improve the cash flow in the economy.

“A strong banking system will be able to improve credit in those sectors which need credit. MSMEs (micro, small and medium enterprises) need credit. NBFCs (non-banking finance companies) need credit, as a large part of the lending is done by them and their ability to lend cannot be reduced,”