Banking liquidity turns deficit after 6 months on tax outflows
Liquidity in the banking system slipped into deficit after nearly six months, primarily because of outflows related to GST and advance tax. According to the RBI data, liquidity was in deficit of ₹31,986.83 crore as on September 22, and the condition is expected to remain tight this week. RBI may continue to conduct variable rate repo auctions to support liquidity.