Banks cut CD borrowings by Rs 1.3 lakh crore in a month amid RBI liquidity boost

Indian banks significantly decreased the issuance of certificates of deposit, lowering outstanding amounts by ₹1.3 lakh crore. This change followed a boost in liquidity from the Reserve Bank of India’s foreign currency deposit scheme. As a result, the need for short-term funding decreased, leading to lower call rates. Fresh CD issuance slightly increased, but rates fell notably, affecting overall funding costs.

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