Technology Innovation To Foil Liquidity Risk In Focus

RBI ANNUAL REPORT FOR 2002-03

The Reserve Bank of India (RBI) has stressed the importance of technological innovation as a vital part of liquidity management systems in banks.

The RBI, in its annual report, highlighted the incidence of technology risk translating into a liquidity risk, resulting in chaos in the banking sector.

This assumes significance against the back drop of the run on ICICI Bank in April 2003 when cash in the bank