Liquidity shortage remained high above Rs 1.50 lakh crore as banks on Thursday borrowed Rs 1,55,260 crore against Wednesday?s record high borrowings of Rs 1,70,485 crore from RBI repo windows. The overnight one-day call rate was a tad higher at 7% as against 6.97% recorded on Wednesday. The yields on three-month Certificates of Deposits (CDs) was flat at 9.06%. At the same time, yields on Commercial Paper (CPs) inched up to 9.53% as against 9.50% on Wednesday.
RBI?s deputy governor Subir Gokarn on Wednesday said, liquidity is expected ease in the month of January. ?A lot of government balances with RBI will come back into the system in January,? Gokarn said.
Close to Rs 50,000 crore has moved out of the system on account of advance tax payments. In its mid-quarter monetary policy, RBI said, it would buy back bonds worth Rs 48,000 crore through OMO in a month?s time.