With the onset of corporate taxes leading to significant advance outflows from the banking system, the Reserve Bank of India on Thursday injected ₹1.1 trillion into the system for the largest liquidity infusion in a day since April 24, 2019.
According to its data, the RBI injected net liquidity worth ₹110, 772 crore into the banking system on March 16.
Thursday's injection of funds also marks the first time since April 24, 2019 that the RBI infused more than 1 trillion into the banking system.
The tighter liquidity conditions resulted in a sharp rise in money market rates, with the interbank call money rate touching a high of 6.80 per cent, much above the repo rate of 6.50 per cent and higher than the MSF rate of 6.75 per cent.
The MSF is the upper band of the interest rate corridor. A rise in the call rate implies a rise in banks' borrowing costs.
The weighted average call rate (WACR) was at 6.65 per cent on Friday versus 6.52 per cent at previous close.
Bu hikaye Business Standard dergisinin March 18, 2023 sayısından alınmıştır.
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Bu hikaye Business Standard dergisinin March 18, 2023 sayısından alınmıştır.
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