Liquidity deficit in banks hits ₹1.5L crore
Mumbai, Sep 21, 2023
The liquidity deficit in the banking system rose to nearly Rs 1.5 lakh crore on Wednesday because of outflows due to advance tax payments and preparations for GST remittances ahead of the second quarter close.
On Wednesday, RBI said it provided liquidity support of Rs 1.5 lakh crore on Monday. Banks had borrowed a record Rs 1.97 lakh crore under the marginal standing facility and parked around Rs 46,724 crore under a special deposit facility.
“We expect RBI to keep liquidity tight in the near-term in order to keep short-term rates elevated, given the pressure on the rupee and underlying inflationary risks. We expect liquidity to normalise towards the surplus zone by end-September/early-October amid the government’s month-end spending,” said Upasna Bhardwaj of Kotak Mahindra Bank in a report.
[The Times of India]