RBI follows Fed's example, steps in to calm financial markets

The Reserve Bank of India in a statement on Monday said that it is ready to take "appropriate actions" to ensure the orderly functioning of financial markets.

RBI's statement comes after a similar one by the US Federal Reserve in the backdrop of the coronavirus outbreak.

The central bank's statements also come after fresh cases of coronavirus infection has been detected in India.

In a statement the apex bank said : "The Reserve Bank of India is monitoring global and domestic developments closely and continuously and stands ready to take appropriate actions to ensure the orderly functioning of financial markets, maintain market confidence and preserve

financial stability."

Globally, financial markets have been experiencing considerable volatility, with the spread of the coronavirus triggering risk-off sentiments and flights to safe haven. Spillovers to financial markets in India have largely been contained, RBI said.

Sentiments across global markets improved over Federal Reserve's statement last week that the central bank would use its tools and "act as appropriate to support the economy".