The RBI faces challenges providing liquidity amidst India’s banking system issues, as traditional OMOs have limited impact due to regulatory and structural constraints. Reforms in CRR and LCR requirements could inject direct liquidity, while innovative measures like long-term repo operations and dynamic LCR adjustments might support broader credit growth and equitable economic growth.
ETMarkets Smart Talk: Mid & Small Caps plunge 25%: A buying opportunity or more pain ahead?
The ongoing correction is driven by a mix of valuation concerns, muted earnings growth, and global macro uncertainties. Rising geopolitical tensions and the risk of
March 10, 2025