HomeNewsBusinessEconomyMandatory bond holding poses growth-stability dilemmal: RBI

Mandatory bond holding poses growth-stability dilemmal: RBI

The statutory liquidity regime poses a growth-stability trade off dilemma for the Reserve Bank of India, the RBI governor said on Friday.

June 10, 2011 / 13:53 IST
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The statutory liquidity regime poses a growth-stability trade off dilemma for the Reserve Bank of India, the RBI governor said on Friday.

Financial stability cannot be the exclusive responsibility of the RBI, Duvvuri Subbarao also said in a speech at the SAARC Finance Governors' Symposium at Kumarakom, Kerala. The statutory liquidity ratio, or the portion of deposits banks are mandated to invest in government debt, currently stands at 24%.
first published: Jun 10, 2011 12:14 pm

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