Reserve Bank of India today mopped up Rs 1,44,913 crore from banks through reverse repo window, reflecting ample liquidity in the system.
Banks which are flush with funds placed 58 bids to park over Rs 1,47,315 crore with the Central bank under Liquidity Adjustment facility (LAF).
After reviewing current liquidity conditions, RBI has decided to conduct only one LAF from today. It would conduct second LAF session only on the reporting Fridays, a day on which banks have to conform to the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) norms. RBI has been holding second LAF session since September 2008
Banks have been parking over Rs 1,00,000 crore daily with RBI at LAF window. The credit demand has moderated while banks face challenge of deploying funds raised through deposits.
RBI has been holding second LAF session since September 2008.
