Repeat of 2008-type liquidity measure to revive IL&FS unlikely. Read why

IL&FS and its subsidiaries defaulted on their payment obligation on inter-corporate deposits and commercial paper, in late August, triggering a sell-off in NBFC stocks

Banks have expressed unwillingness to extend a 2008-type liquidity measure to help the non-banking or mutual fund sectors, but the Centre and the Reserve 

Bank of India (RBI) may bring out other kind of special liquidity measures to bail out IL&FS, said people in the know.

The special liquidity measures could even be announced before IL&FS’s board meet on September 29. “The government and RBI are aware that letting IL&FS fail will have a cascading effect on bond holders and there would be a series of defaults from others too. They want the contagion to stop from spreading,” said one