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How serious is the NBFC crisis?

It would take steps required to ensure that developments in the sector did not impact financial stability

NBFCs
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T T Ram Mohan
The Reserve Bank of India’s monetary policy statement of June ticked all the right boxes. It delivered the predicted 25 basis point policy rate cut. It said the policy stance had moved from “neutral” to “accommodative”, which suggests that further rate cuts could be in the offing. It mentioned that the system had moved to surplus liquidity in June. 

But nagging questions remain. One is whether liquidity is adequate to ensure complete transmission of the cumulative cut in policy rates of 75 basis points over the last three monetary policy statements. Out of the 50 basis point (bp) cut in the
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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