RBI’s Liquidity Measures:
The Reserve Bank of India (RBI) has announced measures to inject over Rs 1.5 lakh crore to increase money liquidity in the economy.Money Liquidity refers to the availability of cash and easily accessible funds in the economy, influencing spending and investment. Liquidity refers to how quickly and easily an asset can be converted into cash without impacting its price much.Reason for Liquidity Shortfall is RBI’s forex sale to stabilize the rupee amid foreign institutional investors (FIIs) outflows led to a liquidity deficit.