Liquidity crunch caused by the global financial crisis that be- gan in US still continues and the financial situation across the globe still remains fluid. Leaders of many countries are busy taking care of their economies that have been battered by the severity of the US financial crisis. The crisis has led to a contraction in the flow of credit from the banking sector to the real sector. Many countries, including US and Europe, which have been directly affected by the turmoil, have taken aggressive steps to manage the liquidity crisis. The integrated and globally-connected financial systems have impelled countries like India also to experience an indirect impact of the global financial crisis.

The Analyst Magazine, Reserve Bank of India, Global Financial Crisis, Liquidity Crisis, Ffinancial Systems, Monetary Policy, Indian Economy, Liquidity Crisis, Inflationary Environment, Policy Makers, Indian financial system, Punjab National Bank, Private Sector Banks, Employees' Provident Fund Organization, EPFO.