RBI plans to send new liquidity tool proposal

RBI will submit details of how its proposes to implement the tool

The Reserve Bank of India (RBI) will submit a fresh proposal to the government for introducing a new liquidity management tool as it grapples with strong foreign inflows, sources said.

The decision to reconsider the so-called standing deposit facility, or SDF, was taken at a meeting between the new Economic Affairs Secretary Subhash Chandra Garg and RBI Deputy Governor Viral Acharya on Monday, the people said, asking not to be identified. 

After a change of guard at the finance ministry with Garg taking charge from Shaktikanta Das, the government has eased its opposition to the new liquidity tool as absorbing flows with