With the Reserve Bank of India (RBI) lowering the Cash Reserve Ratio (CRR) by 250 basis points to 6.5 per cent, the system appeared flush with liquidity, but bankers said the true picture will emerge after a fortnight.
on Wednesday, banks parked Rs 41,095 crore with RBI through the reverse repo route during the two Liquidity Adjustment Facility (LAF) sessions. While eight banks participated in the morning LAF, there were 28, which used the evening session to park funds. In contrast, there were no takers for funds from RBI in the morning session. In the evening, five banks used the one-day repo window to raise Rs 4,800 crore from the central bank. Similarly, none of the banks used the special repo window that has been opened to help mutual funds.
In the overnight call money market, the weighted-average rate was 6.11 per cent as compared with 6.79 per cent yesterday, according to data on the Clearing Corporation of India website. The deals ranged between 4.65 per cent and 7 per cent.
