Road Map to Save India's Cash-Strapped Banks Near Completion
- India may include recapitalization bonds in mandatory reserves
- Modi to infuse $32 billion to spur lending by state banks
Analyst Hazari Sees India's Bank Rescue Plan as Positive
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India is considering all options including making bank recapitalization bonds eligible for inclusion in statutory limits for investment in government securities, a senior government official said.
"Statutory liquidity ratio status allows these bonds to be traded but they may not have an extra interest advantage," Economic Affairs Secretary Subhash Garg said in an interview at his New Delhi office. "That is also being discussed and examined."