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Govt fights rupee drop as RBI takes steps to ease liquidity for banks

The Reserve Bank of India allowed banks to dip further into statutory liquidity reserves to help them meet their liquidity coverage ratio needs

Illustration by Ajay Mohanty
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Illustration by Ajay Mohanty

Kartik Goyal and Anirban Nag | Bloomberg
India upped the ante in its efforts to restore investor confidence, with the central bank taking measures to ease liquidity for lenders a day after the government raised import tariffs to support the battered rupee.

The Reserve Bank of India allowed banks to dip further into statutory liquidity reserves to help them meet their liquidity coverage ratio needs, a step that would boost cash available for lending. On Wednesday, the government raised import taxes on $12 billion of goods as it seeks to narrow the current-account deficit from a five-year high.

The coordinated policy moves come as Asia’s third-largest economy faces a

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First Published: Sep 27 2018 | 6:15 PM IST

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