Deposit mobilisation by banks saw a rise of 10.4% year-on-year till June 13. This growth surpassed the credit expansion of 9.6%. Consequently, the credit-deposit ratio for banks declined. Fixed deposit mobilisation increased due to expectations of deposit rate cuts. Reserve Bank of India reduced the repo rate. Banks’ credit grew 9.6% year-on-year as of June 13.
RBI eases restrictions on cash credit accounts, eases current account norms
The Reserve Bank of India has lifted all restrictions on banks opening and maintaining cash credit accounts, offering greater flexibility for short-term working capital loans.