Weighted average call rate anomaly needs to be fixed, says RBI research

It has been the Reserve Bank of India’s (RBI's) stated objective that the banking system liquidity is comfortable as long as the weighted average call rate (WACR) is below the policy repo rate. But this does not take into account the skewed liquidity pattern that exists between banks.
 
While one set of banks poses liquidity in surplus, the other suffers from an acute deficit. Banks under prompt corrective action (PCA) also does not participate much into the call money market, thereby skewing the liquidity pattern even further. A staff study published in the RBI’s February bulletin shed some light