💨 Abstract

The Indian government is resisting two proposals by the Reserve Bank of India (RBI) that would require banks to set aside more funds for infrastructure projects and hold more liquid assets against online deposits. The proposals, if implemented, could limit credit availability in the economy. The government suggests a case-by-case approach for infrastructure projects and only mandating the "run-off" for deposits vulnerable to heavy withdrawals.

Courtesy: theprint.in

Summarized by Einstein Beta 🤖