Liquidity may turn deficit this week due to advance tax, GST payments
Business Standard|September 16, 2024
After remaining in surplus for over two months, banking system liquidity is expected to shift into deficit mode this week due to advance tax payments and goods and services tax (GST) outflows, said market participants.
ANJALI KUMARI

Surplus liquidity in the banking system stood at ₹1.96 trillion on Thursday, according to the latest data by the Reserve Bank of India (RBI).

"The liquidity will move into deficit after advance tax payments, and we also have GST outflows. It will rebound in October because of government spending," said Madan Sabnavis, chief economist at Bank of Baroda.

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