Liquidity tightens again ahead of Diwali

Last Updated: Tue, Nov 13, 2012 06:12 hrs

Today, banks borrowed Rs 1,06,470 crore under the Reserve Bank of India's Liquidity Adjustment Facility, compared with Rs 87,460 crore on Friday, as liquidity tightened ahead ahead of the Diwali holidays on Tuesday and Wednesday. This was the highest since June 22.

Banks borrowed to meet their three-day reserve needs. The need was also due to meeting the cash demand of customers ahead of Diwali. The interbank call money rate also climbed to 8.14 per cent compared with 8.05 per cent on Saturday, amid tight liquidity.

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