India Inc gave a thumbs up to the Central Bank’s decision to undertake another round of drastic measures to ease liquidity in the financial system, including reducing repo rate by 0.5 per cent, CRR further by one percentage point and SLR by one per cent, saying this will have a positive impact on growth at a time when early signs of a global recession are on the horizon.
I don’t understand where all this money goes on easing liquidity; it must be going in the pockets of India Inc. I feel the pinch in my pocket even more with the increased liquidity because of the growing inflation. The Central Bank seems to be complying diligently with the demands of India Inc, but isn’t it supposed to be the banker to the Govt. of India! Is India Inc the proxy Government of India, for whom RBI generates money not by printing currency, but by easing liquidity!