Banks flag high overnight rates, liquidity terms

Indian banks have urged the Reserve Bank of India (RBI) to find a more even-handed way to distribute liquidity and narrow the gap between overnight rates and the benchmark policy rate. Due to 24/7 banking, banks have held on to cash at the RBI’s Standing Deposit Facility (SDF), increasing the call rate in the call money market, where banks can make overnight financing arrangements.

Generated by Feedzy