Indian Government sets up group to assess liquidity requirements

October 10, 2008: Indian Government has constituted a group to make a quick assessment of the requirements of liquidity and also advise the Government. The group will be headed by Shri Arun Ramanathan, Finance Secretary and Secretary (Financial Services). It will consist of:

(i) Representative of RBI
(ii) Shri T.S. Narayanaswamy, Chairman, IBA & CMD, Bank of India
(iii) Shri U.K. Sinha, CMD, UTI
(iv) Shri Y. M. Deosthalee, CFO, L&T & Director-in-charge, L&T Finance Limited
(v) Shri R.M. Malla, CMD, SIDBI

The group has been authorised to co-opt any more members, if necessary. Group has to begin work immediately, also visit Mumbai, and submit an interim report within a week.

Finance Minister, Shri P. Chidambaram in a statement said that Government has identified that the main problem is liquidity, and we will respond swiftly and take steps to infuse more liquidity according to the needs of the situation. Reserve Bank of India was advised to take appropriate steps in this behalf.

Shri P. Chidambaram also drew attention to the statement made by Mr. Robert Zoellick, President, World Bank that “India is in a position to weather the global financial turmoil.” I also wish to draw attention to the statement of Mr. H. Kuroda, President, ADB that “the impact on the financial sector in Asia is limited this time.”

Indian economy and banking system has the capacity to weather the global financial crisis, says Indian government





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