Ministry said that cut in SLR will allow an increase in bank credit
Finance Minister Arun Jaitely (Photo: PTI/File)
New Delhi: The finance ministry said on Tuesday that the RBI decision to cut the Statutory Liquidity Ratio by 50 basis points will give banks greater leeway to lend. The ministry said that as the economy will pick up and demand grows, cut in SLR will allow an increase in bank credit. The ministry said that going forward, the RBI should examine the liquidity situation, inflation and growth in setting policy rates. It pointed out that the recent data on inflation shows that it is moderating.
( Source : dc )
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