Quick Summary
The banking system, after enjoying a liquidity surplus for over two months, is expected to move into deficit this week due to advance tax payments and GST outflows, according to market experts. As of Thursday, the liquidity surplus stood at Rs 1.96 trillion, based on data from the RBI. "The liquidi
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited News Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
Banking liquidity is expected to decline from a surplus to a deficit due to outflows for advance tax payments and Goods and Services Tax (GST).
The banking system has enjoyed a liquidity surplus for over two months.
A rebound in liquidity is expected in October, with government spending anticipated to boost the surplus.
Bond market participants predict minimal impact on short-term bond yields, partly due to the cancellation of treasury bill auctions in September.
The RBI manages liquidity by balancing both infusion and withdrawal as needed, ensuring rates remain stable despite fluctuations in surplus levels.
The weighted average money market rate hovered just below the repo rate of 6.50%, settling at 6.47% on Friday.
CAclubindia
