Prime Minister Manmohan Singh said today that the liquidity position as a result of CRR and SLR cuts had improved considerably. He expected the inflation to come down in the next two months.
He also said that the global financial crisis would have an indirect impact on the Indian economy.
The RBI and the government are carefully monitoring the flow of credit and it will ensure additional liquidity results in actual credit, he said. He also added that there is no fear of failure of any bank.
