Liquidity crunch: Need to unwind some market-share gains of shadow lenders

If the liquidity taps don't open soon for shadow lenders, property markets could be shaky

Those who are awash in cash lack capital. Those who have adequate capital are thirsty for liquidity. 

That, in a nutshell, is the story of India’s financial crunch, and the surest way to ease it will require tapping Indians living overseas. 

In the past, New Delhi has resorted to such special hard-currency deposit programmes to tide over balance-of-payment difficulties. A notable instance was in 1998, after India invited the US sanctions by testing a nuclear weapon.

Hooking nonresidents would be expensive now because dollar interest rates have risen significantly since the taper tantrum of 2013, the last time India nudged its banks to