Finance Minister P Chidambaram today expressed confidence that India can weather the storm of financial crisis blowing across the world saying the country's economic fundamentals and the banking system were strong.
He admitted there is a liquidity crunch in the market and that the economy was facing 'spill over and ripple' effects of the global storm but held out an assurance that the "RBI is ready to take further steps and infuse more liquidity if necessary".
Referring to the current global meltdown, Chidambaram said "there is a storm blowing in the world. We did not not create the storm. We are facing the spillover effects or the ripple effects of the storm.
"We must brace ourself and weather the storm. I am confident that the Indian economy is strong and resilient to weather the storm and I would request all players in the economy to cooperate with the government in weathering the storm," he told PTI.
Chidambaram said "the weekend is a good time for people to reflect. Firstly, those who have money... There have been wage increases for the government servants, and many have received Diwali bonuses.
"Those who have money should spend some money and should save some money. Savings in banks are completely safe. Our banks are well regulated and well capitalised. Depending on your risk threshold you can save in some other instruments. Someone with a low risk threshold should save in a bank," he said.
