Finance Minister P Chidambaram, on Tuesday, endorsed the Reserve Bank of India’s (RBI) move to curb surplus money supply in the system by raising the Cash Reserve Ratio (CRR).
“RBI’s mid-term monetary policy is more or less a continuation of its policy announced last time. But at the same time it has realised that there is excess liquidity in the money market and accordingly raised the requirement for banks to keep cash with the central bank by 0.5 per cent,” he told reporters here.
Pointing out that banks will draw correct message from the policy, he said RBI is ready to respond with short- term, medium-term and long-term measures, if there are domestic or global developments.
