ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Productive Deployment of Excess Liquidity

The reduction in government borrowing, as the government continues its efforts to bring down the fiscal deficit, is sure to result in excess liquidity in the financial system. Optimal use of funds in this situation will rest on the quality of the banking system's credit delivery and recovery mechanisms.

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