Reserve Bank Deputy Governor Subir Gokarn on Thursday said it was important to ensure adequate level of liquidity in the system as the momentum of recovery picks up.

His comments come at a time when there is intense speculation at different quarters that the apex bank may take steps such as increasing the cash reserve ratio (CRR) to tighten its monetary stance in view of rising food inflation which is at a high 18.65 per cent for the second week of December.
CRR is the amount banks need to deposit with RBI without interest.