The Union government and the Reserve Bank of India (RBI) would provide sufficient liquidity in the monetary system. Both are keeping vigil on the global financial situation and would take appropriate measures to save the interests of investors. They advised people not to worry about their cash in Indian banks as they are strong enough to face any eventuality. The finance minister, P Chidambaram has cancelled his visit to Washington sensing the liquidity fear. He was to attend the meeting of the World Bank and IMF on Monday.

Meanwhile, the stock market of country witnessed decline of 2,000 points. Other major international stock exchanges also faced heat of global meltdown. The shares of Hong Kong's Hang Seng fell 7.2% while the Sydney index closed with 8.3% decline. The crude oil prices fell below $82 a barrel following fears of global meltdown.

The government has also decided to form an advisory committee of bankers and financial experts to discuss liquidity condition in the system. The committee under the chairmanship of Mr. Ramanathan would submit its interim report within a week. The other members of committee are IBA Chairman T.S. Narayanaswamy; UTI CMD, U.K. Sinha; L&T CFO, Y.M. Deosthalee and SIDBI Chairman R.M. Malla.