MUMBAI (Reuters) - Banks have considerable amount of liquidity buffer in the form of bonds which are eligible for meeting statutory liquidity reserve needs, Reserve Bank of India Governor Duvvuri Subbarao said on Friday at a post-policy briefing.
Banks can borrow from the RBI via the liquidity auction window using their excess SLR securities.
Earlier, the Reserve Bank of India cut the repo rate by 25 basis points as widely expected, but said there was limited room for further monetary easing.
(Reporting by Shamik Paul; Writing by Subhadip Sircar; Editing by Subhranshu Sahu)
