The Reserve Bank of India (RBI) on Thursday said it is ready to inject additional liquidity to address any increased demand.
In a statement issued RBI said, the system liquidity is currently in a surplus mode and is moving towards neutrality.
"With a view to address any additional demand for liquidity on account of increase in currency in circulation and advance tax payments by corporates and to provide flexibility to the banking system in its liquidity management towards March-end, the Reserve Bank of India stands ready to inject adequate additional liquidity using a combination of appropriate instruments, while continuing with its normal Liquidity Adjustment Facility (LAF) operations," the statement said.
