MUMBAI The Reserve Bank of India (RBI) will undertake a review of its liquidity management framework over the next few months, said RBI Governor Raghuram Rajan, after keeping key rates unchanged at its monetary policy review earlier on Tuesday.
Rajan said the central bank did not see a "strong reason" to tweak the banks' cash reserve ratio (CRR) or the mandatory cash holding of banks in its policy review. CRR along with the open market operations (OMO) remains an input for long-term liquidity management, he added.
"We're also looking at our entire liquidity framework over the next few months and as we review that, we will keep you appraised of developments," Rajan said in a post-policy teleconference with analysts.
(Reporting by Neha Dasgupta, Swati Bhat and Suvashree Dey Choudhury)
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