NEW DELHI: The Indian government's cash balance is expected to "even out" in the coming weeks, a top finance ministry official said on Tuesday, after the central bank unveiled steps to ensure more availability of cash in the banking system.
The Reserve Bank of India cut its policy interest rate by a quarter percentage point on Tuesday, reducing it to a more than five-year low. It also reduced the cash proportion of daily reserve requirements that banks must keep with it, while pledging to inject more long-term liquidity.
Shaktikanta Das, economic affairs secretary in the finance ministry, said the central bank's move on interest rates will help in transforming India into a low-cost economy.