The Reserve Bank of India and the Government on Wednesday agreed to take fresh measures immediately to infuse liquidity into the system, says Finance Minister P Chidambaram.
"Government and RBI have agreed on the measures that have to be taken immediately," he told reporters in New Delhi.
RBI Governor D Subbarao, the minister said, will work out the details of the measures agreed upon between the government and the central bank.
"I expect to be able to make a statement later in the afternoon," Chidambaram said.
He said Prime Minister Manmohan Singh on Tuesday reviewed the financial situation with particular reference to the liquidity position at a meeting with the RBI Governor, Deputy Chairman of the Planning Commission Montek Singh Ahluwalia and senior officials of the ministry.
The developments and measures taken by other countries were also reviewed, the Finance Minister said.
Meanwhile, the Bombay Stock Exchange benchmark index Sensex was down by 345 points or three per cent in early trade.