Finance Minister P Chidambaram today announced more measures to enhance liquidity in the system by allowing corporate to bring more money from foreign investors, releasing more cash for banks and taking steps to further strengthen banking system. Chidambaram said RBI would immediately release Rs 25,000 crore to the commercial banks, cooperative banks and RRBs under the farm loan waiver scheme. He also announced doubling of the investment limit to six billion dollars for foreign institutional investors in corporate bonds.
The series of announcements came on a day when stock markets tanked, with the benchmark Sensex losing 674 points, reversing the two-day winning streak. Chidambaram, who along with RBI Governor had briefed the Prime Minister last night on the measures taken so far while exploring the other options, said the measures so far have helped improve liquidity and it has been felt that more steps are needed.
The series of announcements came on a day when stock markets tanked, with the benchmark Sensex losing 674 points, reversing the two-day winning streak. Chidambaram, who along with RBI Governor had briefed the Prime Minister last night on the measures taken so far while exploring the other options, said the measures so far have helped improve liquidity and it has been felt that more steps are needed.
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