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RBI Announces Measures To Suck Liquidity From Banks As Deposits Surge

The RBI said the overall rate for the cash reserve ratio remained unchanged at 4%.
The RBI said the overall rate for the cash reserve ratio remained unchanged at 4%.
New Delhi/Mumbai: The Reserve Bank of India (RBI) on Saturday unexpectedly ordered banks to deposit their extra cash with it, in a bid to absorb excess liquidity generated by a government ban on larger banknotes. Many Indians deposited their old notes with their banks after the ban on 500 and 1,000 rupee notes ($7.30-$14.60) on Nov. 8, which is aimed at tax evaders and counterfeiting. Banks had put some of this cash into government...
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