We thus devised a made-to-measure mechanism in the form of short-term foreign currency swaps which we introduced just before Christmas to inject liquidity in the market, thereby avoiding the uncertainties that could have had financial stability implications, while also offering the option of T-Bills on tap to mop up any resulting excess rupee liquidity.
Banking sector Performance Our banking sector emerged virtually unscathed from the global financial crisis. While bank failures made the headlines in other countries, our banks weathered these difficult times without any systemic or institutional failures. Banking sector assets declined very slightly by 0.4 per cent while banking deposits increased by 2.1 per cent between December 2008 and December 2009.