RBI reopens second liquidity line to prevent credit squeeze

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A shortage of liquidity in India's money markets has forced the Reserve Bank of India to reopen a second liquidity facility for short-term borrowing after fears a shortage could disrupt the financial system.

The Reserve Bank on Tuesday said it had reopened its second Liquidity Adjustment Facility (SLAF), an open market operation tool used to address short-term cash shortages through repurchase agreements which had originally expired on 30 July after being introduced in 28 May, in order to allevi

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