The Reserve Bank of India (RBI) is taking steps to deal with global financial crisis. It has announced various measures to ensure proper supply of cash in the market. The apex bank has provided ease in the statutory liquidity ratio (SLR) to address the cash need of banks. Banks are required to keep 25 percent of their liabilities as SLR securities as per current rules. The bank has now provided relaxation to banks by one percent. It would manage liquidity by conducting LAF operations on daily basis. Banks need not pay penal interest to break the SLR norm.

The central bank has also decided to sell dollar on current prices. The step is aimed to cut further depreciation of rupee. Rupee is weakening day by day as compared to US dollar. The bank has increased interest rates on non-resident deposits by 50 basis points to attract FDI. Good amount of foreign direct investment can also stop further depreciation of rupee

The steps are aimed to deal with the situation after the bankruptcy of Lehman Brothers.