 "RBI, RBI monetary policy")
The Reserve Bank of India (RBI) on Thursday said it would use instruments such as cash management bills and the reverse repo to manage excess liquidity to bring it closer to the neutral position. This will ensure that excess money does not stoke inflation.
It will use the Standing Deposit Facility (SDF) after amendments have been made to the RBI Act. This would give the regulator more flexibility to manage its liquidity operations, the RBI said in its first monetary policy for 2017-18. It expects liquidity conditions to remain in surplus in the short run.
Referring to the impact
