The weighted average call rate increased to 5.52% on Thursday. This rise occurred due to Goods and Services Tax outflows. Excess funds were also locked with the Reserve Bank of India. This was in a variable rate reverse repo auction. The Reserve Bank of India held a variable rate repo auction to ease liquidity.
Lenders may turn to OFCB route to raise more funds abroad
Indian banks are now shifting focus towards borrowing in overseas foreign currencies to meet their fundraising requirements. This strategic pivot comes in light of an