The finance ministry and the Reserve Bank of India (RBI) on Monday said liquidity situation of the economy is comfortable and it will be boosted further by Rs 35,000 crore through the rupee-dollar swap window.
Asked about the new tool of rupee-dollar swap arrangement by the RBI to infuse liquidity, Garg said it is a "sound move (by the RBI)".
"At the moment, I don't think there is any issue with regard to liquidity in the market. If some people are not getting financing then it is probably because of their balance sheet problem," the official said.
The auction of $5 billion for a tenure of three years will be conducted on Tuesday.