Banks can boost liquidity by drawing down on CRR: RBI governor Das

The fall in the liquidity surplus is owing to multiple factors, including the RBI's interventions in the forex market and a sharp pick-up in bank credit growth, which is currently at nine-year highs

Shaktikanta Das
Premium

RBI Governor Shaktikanta Das

Bhaskar Dutta Mumbai
At a time when surplus liquidity in the banking system has shrunk considerably, banks can augment systemic liquidity by drawing down on excess cash reserve ratio and statutory liquidity ratio, Reserve Bank of India Governor Shaktikanta Das said on Friday.

From around Rs 8 trillion in early April, the liquidity surplus in the banking system has shrunk to around Rs 1 trillion in September, with the system even slipping into deficit during advance tax outflows earlier this month.

The fall in the liquidity surplus is owing to multiple factors, including the RBI’s interventions in the foreign exchange market and a

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Sep 30 2022 | 11:01 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com