RBI weighs reforms to liquidity framework

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The Reserve Bank of India has published a report into potential reforms to the ways it provides liquidity to the market, as part of setting the short-term interest rate.

A report by an expert committee, published on September 26, sets out a series of recommendations. It says the current corridor system and main interest rate – known as the call money rate – should be retained. A corridor system allows maximum flexibility, the committee says – it can operate in conditions of either liquidity

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