Liquidity main issue, India can weather global turmoil:MoF

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The Ministry of Finance (MoF) said that liquidity has been identified as the main problem, and the Ministry will respond to the issue swiftly and accordingly take steps to infuse more liquidity, reports CNBC-TV18.

 

The MoF said that Reserve Bank of India (RBI) is also keeping close and continuous watch on the current market situation.

 

It added that corporates want the liquidity issue to be addressed comprehensively. So the Ministry has decided to form a panel to assess  liquidity. The panel will be headed by the Finance Secretary and Secretary of Financial Services Arum Ramanathan and will have five other members.

 

MoF also noted that India is in a position to weather global turmoil as the banks in the country are well capitalized and the fundamentals of the Indian economy are also very strong.

 

The Ministry believes that the impact of financial situation in Asia is limited in India's context and it's very important for credit to continue to flow to all sections of economy.