Business
Over Rs 2 lakh crore in banking liquidity deficit due to lower government spending and sluggish deposit growth
By - 19 Jan 2024 02:34 AM
With the Interim Budget just two weeks away, the deficit in the banking system liquidity widened to over Rs 2 lakh crore on January 15 on lower government spending and slower growth in the bank deposits compared to credit.
The liquidity deficit, as reflected by the amount of money injected by the Reserve Bank of India (RBI) into the banking system, stood at Rs 2.11 lakh crore on Monday — its highest level since December 28 when the deficit stood at Rs 2.68 lakh crore. The liquidity deficit seen in December was due to advance tax and goods and services tax (GST) payments.
