In the globalized market scenario, the impact of recession at one place/ indusrty/ sector perculate down to all the linked indusrty and this can be truly interpreated from the current market situation which is faced by the world since approx 2 month and still the situation is not in control inspite of various measures taken to fight back the recession in the market.The badly hit setor at present being the financial sector, and major issue being the "LIQUIDITY Crises" in the market.
In-spite of the various measures to subsidise the impact of the recession and cut down the inflation present nothing really sound have been done.
Various steps taken by RBI to curb the present recession in the economy and counter act the prevailing situation. The sudden drying-up of capital inflows from the FDI which were invested in Indian stock markets for greater returns vizualizing the Potential Higher Returns flying back is continuing to challenge liquidity management.At the heart of the current liquidity tightening is the balance of payments deficit, and this NRI deposit move should help in some small way.
To curb the liquidity crises the RBI will continue to initiate liquidity measures as long as the current unusually tight domestic liquidity...