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Surplus liquidity slumps to Rs 3K cr on tax outflows, shows RBI data

The RBI's average daily absorption of excess liquidity was at Rs 3.8 trillion during June-July against Rs 5.5 trillion in May and Rs 7.4 trillion a month ago

Photo: Bloomberg

Advance tax is paid as and when the money is earned in four instalments, rather than at the end of the fiscal year

Bhaskar Dutta Mumbai
Surplus liquidity in the banking system as measured by absorption of excess funds by the Reserve Bank of India (RBI) fell sharply at the end of the last week due to outflows on account of advance tax payments.

According to the RBI data, the net liquidity absorbed by the central bank on September 16 was at Rs 3,243.57 crore, much lower than the average of Rs 56,809.92 crore in the preceding four days of the week.

The average absorption of funds by the RBI so far in September is at Rs 1.13 trillion, against the average of Rs 1.2 trillion

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First Published: Sep 19 2022 | 9:05 PM IST

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