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SOURCES TO COGNCIS : BPCL Plans To Raise At Least Rs 1,000 Cr Via 10-Yr Bonds TATA MOTORS : Board To Mull Raising Up To Rs 5,000 Cr Via NCDs

Rationale For Liquidity Tightening Measures

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July 30: RBI Governor D. Subbarao explains the rationale behind the central bank’s liquidity tightening measures. “The idea was making liquidity scarcer and more costly, so modulating access to LAF was the most efficient way to curb rupee volatility,” he says. He also spoke about the impact on banks and the possibility of their raising rates.