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Banks ask RBI to leave government`s surplus cash with them to maintain liquidity in money market
lenders have asked the Reserve Bank of India (RBI) to leave surplus cash of the government with them so as to prevent a situation where money market is devoid of ample liquidity
Zee Media Bureau
Mumbai: In wake of cash crunch when overnight interest rate are rising to a substantial level, lenders have asked the Reserve Bank of India (RBI) to leave surplus cash of the government with them so as to prevent a situation where money market is devoid of ample liquidity, as per a report published in the ET.
The report further adds that the banks have also put forward their demand in front of the RBI governnor Raghuram Rajan to cut the cash reserve ratio (CRR) by a percentage point. They have also demanded the Central Bank to release about Rs 94,000 crore.
However, the RBI has not still revealed what its action will be in the impending monetary policy review on April 5.