The Government of India is continuously making efforts to regain the confidence of the investors. In this regard, the Reserve Bank of India (RBI) announced some steps to increase the cash to banks .
According to reports, RBI has allowed banks to use cash from 'Minimum Cash Reserves according to the rules' so that they could meet their cash needs. With this permission, banks will now have more money available to lend.
This decision of RBI came after the announcement to increase the tariff on imports of 19 non-essential goods to pause the falling rupee. To keep the current account deficit under control, the government announced to increase duty on import of goods worth Rs. 86 thousand crore on Wednesday.
Ashish Vaidya, the trading head of Mumbai-based DBS Bank, said, "The steps announced have a positive impact on margins in their short-term, but in order to change the direction of these rupees and financial markets, there will be no game changer. '
Actually, the recent efforts made to stop the falling rupee are not successful, so the pressure to do more on the respective institutions is increasing so that the rupee and stock market decline can be stopped.
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