Commodity Online
NEW DELHI : Following major central banks across the globe in providing liquidity infusions, Reserve Bank of India on Wednesday decided to provide Rs 25,000 crore for lending to financial institutions.

Finance Minister P Chidambaram while announcing the move here said, Rs 7,500 crores will be provided to commercial banks and Rs 17,500 to NABARD.

The Finance Minister said, “Our banks have enough liquidity and the RBI will provide money to the lending companies at once. No bank has a Capital Adequacy of less than 10 percent “.

Credit to borrowers must be ensured at least to the extent of sanctioned amounts, he said.

He also announced doubling of the investment limit to six billion dollars for foreign institutional investors in corporate bonds.