New Delhi: Finance Minister P Chidambaram assured the cash-strapped markets that government will inject more funds into the system within 10-12 days through the supplementary demands for grants which will come up for approval before Parliament later this month.
“In about 10-12 days from today when the supplementary is passed by the Parliament, a substantial amount of liquidity will be infused into the market,” he said in an interview to private TV channel CNBC TV18.
RBI has already announced the decision to cut the mandatory deposits that banks keep with it by 150 basis points to infuse Rs60,000 crore into the financial system and also the government cancelled sale of Rs10,000 crore bonds to ease liquidity pressure.
These decisions, which were announced in the morning, calmed down the stock market which plunged by 1,000 points in the early trade at Bombay Stock Exchange (BSE).
The supplementary demands for grants will be taken up for discussion and passage during Parliament session beginning on 17 October.