Business

India's cash rate at near 6-month high on advance tax outflows

  • Reuters, Mumbai
  • |
  • Updated: Sep 16, 2013 11:11 IST

India's overnight cash rate rose to a near six-month high of 10.65 % as corporates withdrew funds from banks to pay advance tax, due by September 15.

The cash rate hit its highest since end-March.

Banks borrowed 1.17 trillion rupees from the RBI's marginal standing facility on Friday, highlighting the extent of the cash tightness.

The central bank later on Saturday announced a special two-day funding window for banks, after interbank collateralised borrowing rates jumped as high as 72 %.

 

also read

It’s official now! Indian economy grew faster than earlier estimate...

blog comments powered by Disqus