Banking liquidity hits lowest since June 29; RBI data reveals Rs 2,884 crore deficit

Mumbai Banking system liquidity fell to the lowest level since June 29, latest data from the Reserve Bank of India (RBI) showed. The deficit is due to a pick-up in credit growth and likely intervention by the central bank in the foreign exchange market, economists said. System liquidity was in a deficit of ₹2,884 crore on Wednesday. On June 29, it was in a deficit of ₹13,076 crore. Intervention by the RBI is expected to further fuel the deficit in coming days, the economists said.