RBI says it's open to liquidity needs, ahead of meeting with shadow bankers

Das says the RBI constantly monitors liquidity conditions and would take steps to address any deficit in the banking system

India's central bank is open to infusing "need-based" liquidity into the financial system, Governor Shaktikanta Das said on Monday ahead of a meeting with the shadow banking sector, which has been hit hard by a funding crunch.

Government officials have pressed the Reserve Bank of India (RBI) over the past few months to ease lending and capital rules for banks and provide more liquidity to shadow banks.

They have also urged the RBI to step up lending support for small businesses and allow the government to use more of the central bank's surplus reserves to boost the economy.

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