India keeping a close watch on the possible fallouts of Brexit | business | Hindustan Times
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India keeping a close watch on the possible fallouts of Brexit

The Indian government and the central bank are closely monitoring the possible fallouts if Britain votes to leave the European Union, Junior Finance Minister Jayant Sinha said on Thursday.

Britain EU Referendum Updated: Jun 21, 2016 14:22 IST
Minister of state for finance Jayant Sinha said the Reserve Bank was trying to ensure sufficient liquidity in local markets as a defence against Brexit
Minister of state for finance Jayant Sinha said the Reserve Bank was trying to ensure sufficient liquidity in local markets as a defence against Brexit(Reuters)

The government and the RBI are closely monitoring the possible fallouts if Britain votes to leave the European Union (EU), junior finance minister Jayant Sinha said on Thursday.

On June 23, UK will vote on whether to remain in the 28-nation European Union or to leave. Britain’s exit from the EU, or Brexit, is being debated globally as it could have implications for the international financial market and exchange rates.

Fears of a Brexit has rattled financial markets globally. The pound and the euro have lost value on fears a Brexit could tip the 28-member bloc into recession.

Sinha said the Reserve Bank of India was trying to ensure sufficient liquidity in local markets as a defence against Brexit since India has significant trade with UK as well as EU. It also receives large investments from the Europe.