RBI Governor Urges Banks to Boost Interbank Lending as Markets React to Policy Decision

The Reserve Bank of India's Governor called for increased participation in the interbank call money market, highlighting concerns over some banks' reluctance to engage in uncollateralized lending. This statement came as the Nifty 50 index responded to the RBI's latest monetary policy decision, declining 0.25%. The central bank's focus on improving liquidity flow through interbank lending aims to enhance market efficiency amid ongoing rate stability, with the repo rate maintained at 6.25%. The market's reaction reflects cautious sentiment as investors digest the policy implications.

Source: Business Standard