In a bid to tackle the increasing cash crunch, the Reserve Bank of India’s recent auction aimed at injecting liquidity into the banking system has witnessed a significant demand from financial institutions.
This demand surge comes as banks face a widening liquidity deficit, with bids reaching Rs 3.08 trillion against the notified amount of Rs 2.5 trillion.
The article also sheds light on expectations of persistent liquidity challenges in the upcoming month and insights from market experts on potential easing.