Banking system liquidity turned deficit for the first time in the current fiscal on August 21 after the Reserve Bank of India’s (RBI) asked banks to maintain incremental cash reserve ratio (I-CRR), goods and services tax (GST) outflows and selling of dollars by the central bank.
The liquidity, as reflected by the amount of money injected by the RBI into the system, stood at Rs 23,644.43 crore on August 21, the latest RBI data showed. Since the beginning of FY2024, the RBI has been absorbing excess liquidity from the banking system.