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Govt said to oppose RBI's new cash tool proposal

RBI in April said it was awaiting government's nod on measure

Siddhartha Singh Anirban Nag & Subhadip Sircar 

The Indian central bank’s proposal to introduce a new liquidity tool to help manage a banking system flooded with surplus cash is facing opposition from the government, according to people with knowledge of the matter. The government is concerned that the so-called Standing Deposit Facility, or SDF, will give the Reserve Bank of India the discretion to set an interest rate outside the purview of the monetary policy panel, two of the people said, asking not to be identified as the matter isn’t public. Allowing the facility could also lead to the possibility of the SDF ...

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First Published: Tue, May 16 2017. 03:38 IST