Liquidity deficit nearly doubles to Rs 1.49 lakh crorehttps://indianexpress.com/article/business/banking-and-finance/liquidity-deficit-nearly-doubles-to-rs-1-49-lakh-crore-5511044/

Liquidity deficit nearly doubles to Rs 1.49 lakh crore

The yield on the benchmark bond ended at a 34-week low of 7.26 per cent on Wednesday, led by a fall in crude prices and liquidity infusion by the central bank of an additional Rs 10,000 crore through OMOs this month.

open market operation, Reserve Bank of India, liquidity deficit, indian banking system, indian express
According to analysts, the average liquidity deficit has almost doubled from Rs 84,737 crore during the week ended December 14 to Rs 1.49 lakh crore during the week ended December 21.

Despite open market operation (OMO) purchases worth Rs 35,000 crore made by the Reserve Bank of India this month out of the planned Rs 50,000 crore, the liquidity deficit in the banking system widened during the week ended December 21, which marked the 11th consecutive week to see the banking system face an overall liquidity crunch. According to analysts, the average liquidity deficit has almost doubled from Rs 84,737 crore during the week ended December 14 to Rs 1.49 lakh crore during the week ended December 21.

The yield on the benchmark bond ended at a 34-week low of 7.26 per cent on Wednesday, led by a fall in crude prices and liquidity infusion by the central bank of an additional Rs 10,000 crore through OMOs this month. —FE