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.

The second biggest bank of India, ICICI said that the bank maintains sufficient liquidity to deal with global meltdown. It is to be noted that the bank has a considerable exposure in the US and Europe markets.

Meanwhile, the shares of ICICI bank witnessed the largest ever fall of 28 percent in the morning session of Bombay stock exchange. The shares of ICICI fell 19.71 per cent on Friday to close at Rs 364.10.

The managing director & CFO of ICICI Bank, Chanda Kochhar said the bank never used rupee funds for its international growth initiatives. The financial health of bank is sound and the customers need not to worry about. The bank has sufficient liquidity with additional liquidity of Rs 12,000 crore in its overseas subsidiaries.

HDFC Mutual Fund house has begins initial offering period of HDFC Fixed Maturity Plan 370 Days October 2008 (1), a close ended income scheme under HDFC Fixed Maturity Plans-Series IX.  

The Indian business community has demanded reduction in the CRR (cash reserve ratio) and the repo rate to insulate the country from the global financial crisis. The bankers hoped that RBI can cut the CRR in the next monitory policy review. The apex bank would take various steps to address the liquidity problem in the market. 

The Reserve Bank of India (RBI) has announced a 150 basis points (bps) cut in the Cash Reserve Ratio (CRR) to 7.5% with effect from tomorrow, instead of to 8.5 percent as previously announced.

According to market experts, the CRR cut is definitely a positive move, which is going to soothe some liquidity fears. The cut is expected to inject liquidity into the system to the tune of Rs 60,000 crore.

Washington - The US government plans to take ownership stakes in banks in a fresh bid to restore confidence in financial markets, Treasury Secretary Henry Paulson said Friday.

The dramatic step comes as part of the 700-billion-dollar rescue package passed by Congress last week that gave the government broad new powers to buy up soured mortgage assets from troubled banks in the United States.