ISLAMABAD, PAKISTAN: HIGHLIGHTS Trump spoke to Nawaz Sharif by phone; Pak later released chat details Pak a "fantastic country" with "fantastic people": Donald Trump Would welcome effort by Trump to ease regional tensions: Pak spokesperson The morning papers were giddy with hyperbole on Thursday over the news that Donald Trump had spoken to Prime Minister Nawaz Sharif by phone a day earlier and showered compliments on a country he once accused of "betrayal and disrespect" - even offering to help the nuclear power solve its problems abroad. " 'Call me anytime,' Trump tells PM," touted the Express Tribune, describing the "instant rapport" between the two leaders during the congratulatory call initiated by Sharif. His office then released a readout of the call.The newspaper also suggested that the U.S. president-elect, who called Pakistan a "fantastic country" with "fantastic people," might "prove to be Islamabad's good friend." By the end of the day, though, the official tone had become more circumspect, and commentators were skeptical that Trump, who has little foreign policy experience and close business relations with Pakistan's archrival India, really was ready to weigh in on the thorny issues that have long roiled the Muslim-majority nation's international relations. "Our relationship with the United States is not about personalities, it is about institutions," said Nafees Zakaria, a spokesman for the Foreign Ministry. Describing Sharif's gesture as a "courtesy call," Zakaria said Pakistan would welcome any effort by Trump to ease regional tensions, but the spokesman added, "We do not comment on bilateral relations between sovereign countries." Khurshid Mahmud Kasuri, an analyst and former foreign minister, observed that although "Mr. Trump is a warmhearted person," he "lacks expertise in foreign policy" and is not yet in office. Noting the obvious "excitement" shown by Sharif's office over the conversation, Kasuri said, "One nice call . . . is not something we read too much into." Trump, he added archly, "could have been equally effusive with Indian Prime Minister [Narendra] Modi." The reaction in India, not surprisingly, was cooler still. India and Pakistan have been at loggerheads over the Himalayan region of Kashmir for decades, but India has always opposed Pakistan's desire to have the United States or other countries play a mediation role. Tensions have escalated in recent months, with deadly border attacks against Indian forces and harsh repression of protesters in the Indian-administered portion of Kashmir. "Insofar as the fantastic conversation is concerned . . . I would reserve my judgment," said Vikas Swarup, a spokesman for India's Ministry of External Affairs. "We have seen only a one-sided version of that conversation." Swarup said India would welcome a "dialogue" between Pakistan and the United States to resolve outstanding issues but specified that "the most outstanding" issue is "Pakistan's continued support to cross-border terrorism." Many comments posted on social media in India were derisive and mocking, as were many comments from Pakistanis. Some made fun of Sharif, who is accused of hiding financial assets abroad, casting him as desperate for foreign friends. Some derided both leaders as corrupt "scammers" who would get along famously as a result. "So where is the new Trump Tower in Pakistan actually going to be?" one post asked.

The government has on the recommendation of the Reserve Bank of India revised the ceiling for issue of securities under the Market Stabilisation Scheme to Rs 6 lakh crore. The earlier limit was Rs 30,000 crore.

Economists say that the steep increase in the limit will benefit banks as they will earn interest by deploying the excess deposits under market stabilisation scheme bonds. In the present scenario, banks are not earning interest on the excess deposits as the RBI had earlier ordered banks to deposit their extra cash with it under cash reserve ratio requirements

. Thus economists say the higher limit under market stabilisation scheme reduces the threat of a steep downward revision in fixed deposit rates. Madan Sabnavis, chief economist at CARE Ratings, expects the RBI to soon revoke its earlier decision on cash reserve ratio requirements.

The Market Stabilisation Scheme is a tool used by the Reserve Bank of India

to drain excess liquidity from the financial system through issuance of government bonds and other securities. The RBI decides the timing and tenure of such bonds.

The money raised through the Market Stabilisation Scheme is maintained by the RBI in a separate account and can't be used for meeting government expenditure. 

After banning 500 and 1,000 rupee notes last month to fight black or untaxed money, the government has allowed the deposit of old notes in banks till December 30. There has been a surge in deposits and so "there has been a significant increase of liquidity in the banking system which is expected to continue for some time," the RBI has said.

According to the latest data released by the central bank, banks have reported exchange and deposits amounting to nearly Rs 8.50 lakh crore between November 10 and November 27.

Banking stocks today pared losses after the increase in the limit under the Market Stabilisation Scheme.  The index for banking stocks Bank Nifty, which had fallen as much as 1.5 per cent, ended 1 per cent lower. 

Last month, the Reserve Bank in a surprise move had ordered banks to deposit their extra cash with it, in a bid to absorb excess liquidity generated by demonetisation under the cash reserve ratio or CRR

requirements. 

Deposits held under CRR earn no interest for banks and it had led to a selloff in banking stocks. Many analysts said they feared that unless the government sharply increased the Market Stabilisation Scheme limits banks would be forced to cut fixed deposit rates