Monetary problem, real solutions

The Reserve Bank of India (RBI) is trying to prop up a battered rupee by curtailing the funds that banks can lend one another. The chairman of India's largest bank, the State Bank of India, Pratip Chaudhuri, feels this is a roundabout way to choke liquidity: the RBI, he says, could simply have hiked the repo rate, at which the central bank lends to banks. He is correct.

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