RBI Shuns Fixed-Rate Liquidity Operations

The Reserve Bank of India (RBI) is unlikely to reintroduce the policy of lending money daily to banks at a fixed rate, despite increased clamour for it from market participants, three sources said on Thursday.

- DHARAMRAJ DHUTIA

The policy, called fixed-rate liquidity operations, will help banks manage their needs better, several bankers proposed to the RBI in meetings held over the last few months.