Banks today borrowed over Rs 83,000 crore from the Reserve Bank of India (RBI) via repo route.
Liquidity is tight as Rs 35,000 crore went out of the system for advance tax payments. RBI’s intervention in the forex market has also sucked out rupee. Further, banks with surplus funds have turned cautious as they want to keep cash at their disposal.
The scale of borrowing remained high all through the week marked by extreme volatility across all segments of the financial markets due to the global financial turmoil. The daily LAF borrowings were above Rs 50,000 crore.
