The reversal of rules follows the central bank's decision to defer proposals to increase the capital that banks set aside for new project loans and liquidity they hold for digital deposits
Indian banks' loan growth has moderated for six straight months through December as the liquidity constraints forced lenders to focus on boosting deposits, instead of issuing credit
The average systemic liquidity surplus in August stood at Rs 1.49 trillion, up from Rs 1.02 trillion in July. Over the past 12 months, the average liquidity surplus was Rs 0.49 trillion
The surplus liquidity in the banking system stood at Rs 13,377 crore on Wednesday, against Rs 4,356 crore on Tuesday, according to the latest data by RBI
Reflecting a robust economic growth, bank credit grew 16 per cent year-on-year (Y-o-Y) till January 12 in the current financial year against 16.5 per cent growth last year
The banking system's liquidity primarily stayed in deficit during the third quarter of the current financial year and it widened further in January, driven by tax outflows
ndian banking system is facing a widening liquidity deficit, reaching levels last seen in 2016, that may prompt the central bank to provide another round of short-term cash infusion
"The estimates are that around Rs 90,000 crore to Rs 1 trillion will go out as goods and services tax (GST) outflow," a dealer at a primary dealership said