RBI may consider fresh liquidity steps to propel growth: Mohan

NEW DELHI: The Reserve Bank of India (RBI) could consider fresh measures to provide liquidity in the country���s financial system to propel economic growth.

The central bank���s deputy governor Rakesh Mohan, who was in the capital, on Monday said that the regulator has taken several steps to ease the liquidity crunch in the system and it is committed to providing adequate liquidity in the market.

Mr Mohan���s statement comes at a time when all private, government and foreign banks are asking for rate cuts. Large commercial banks, including private sector banking major ICICI Bank, public sector major State Bank of India (SBI) and foreign player Deustche Bank, have pressed upon the need for further rate cuts.

���As measures announced on Saturday show RBI is committed to provide adequate liquidity in all the markets,��� Mr Mohan told reporters in the capital. He said that the regulator is seized of the global liquidity crisis and is taking the desired steps to ease the liquidity crunch in the domestic economy. RBI has been acting since

September 16 on a consistent basis to make sure that the Indian financial market works efficiently and adequate liquidity is available in the system so that credit flows smoothly and economy functions normally, he said.

Mr Mohan, however, refused any reply on whether the central bank would be taking more measures to increase money supply in the system.