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Banking system's liquidity slips into deficit for first time in FY24

Banking system liquidity stood at a deficit or 236 billion rupees ($2.84 billion) as of Aug. 21, according to RBI data

Bank, Banks, foreign banks
Surplus had hit a high of Rs 2.8 trillion at the start of this month, but has since been dropping, especially after the RBI told banks to hold an incremental cash reserve ratio (CRR)
Reuters MUMBAI
1 min read Last Updated : Aug 22 2023 | 11:28 AM IST

India's banking system liquidity has slipped into deficit for the first time this financial year after the Reserve Bank of India's temporary liquidity withdrawal move and tax outflows.

Banking system liquidity stood at a deficit or 236 billion rupees ($2.84 billion) as of Aug. 21, according to RBI data.

Surplus had hit a high of Rs 2.8 trillion at the start of this month, but has since been dropping, especially after the RBI told banks to hold an incremental cash reserve ratio (CRR) of 10% on increase in deposits between May 19 and July 28, which has led to withdrawal of over one trillion rupees.

 

 

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Topics :Reserve Bank of IndiaIndian banking systemBanking systemRBI

First Published: Aug 22 2023 | 11:28 AM IST

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