Banking liquidity surplus shrinks to Rs 541 crore as cash crunch increases
Liquidity surplus in the banking system was reported at ₹541 crore as of October 21. Banks have increased fund parking to meet their daily cash reserve requirements of 99%. The weighted average call rate (WACR) rose to 5.65%, which is 15 bps higher than the repo rate. The Reserve Bank of India conducted variable rate repo operations to manage systemic liquidity.
Mumbai: Liquidity surplus in the banking system narrowed to ₹541 crore as of October 21, as banks parked additional funds to meet the daily cash reserve requirement of 99%. Consequently, the weighted average call rate (WACR) stood at 5.65% Thursday, 15 bps higher than the repo rate, CCIL data showed.Read more: Jio leverage play pops up at SBI as India brokers lure IPO betsThe Reserve Bank of India's (RBI) variable rate repo (VRRR) operations to infuse ₹50,000 crore liquidity garnered bids of ₹1.62 lakh crore amid a cash crunch in the system.
