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

Indian banks have cut their borrowings from certificates of deposit by a significant Rs 1.3 lakh crore in just one month. This reduction in CD borrowings is largely due to a boost in liquidity provided by the Reserve Bank of India's foreign currency deposit scheme. The resulting decrease in the need for short-term funding has led to lower call rates, which is beneficial for the economy. This development is a positive sign for the Indian market, as lower funding costs can help stimulate economic growth.

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Indian banks have decreased their CD borrowings by Rs 1. 3 lakh crore in a month, following a boost in liquidity from the RBI.

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