RBI Governor D Subbarao is scheduled to meet Prime Minister Manmohan Singh later this evening, Finance Minster P Chidambaram said on Tuesday. 

"Governor RBI has returned to Mumbai. He has been requested to go over to Delhi this evening. The Governor is scheduled to meet the PM later this evening," Chidambaram told reporters.

The meeting assumes significance as the Governor will be meeting the Prime Minister to discuss the measures being taken by the central bank to ease the liquidity crisis.

Subbarao went to the US to attend the annual meetings of the World Bank and International Monetary Fund.

Chidambaram, it may be recalled, had cancelled his visit to the US to tackle the problems caused by the meltdown of global financial markets.

The RBI had already reduced the mandatory deposit cash reserve ratio that banks keep with the central bank by 1.5 per cent, unlocking Rs 60,000 crore (Rs 600 billion) of funds.

This morning the central bank announced steps to pump in Rs 20,000 crore (Rs 200 billion) through the repo route to help the mutual fund industry meet redemption pressure.