Liquidity in the banking system has eased as is evident from the decline in the borrowing of banks through Reserve Bank of India's (RBI) liquidity adjustment facility (LAF). Money market participants feel that the easing liquidity may be because the government has already started spending. On a recent day, banks borrowed Rs 10,880 crore through RBI's LAF and this is sharply lower than over Rs 100
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RBI keeps CRR unchanged
A resolute Reserve Bank of India (RBI) refrained from reducing policy repo rate in its mid-quarter review of monetary policy on 17 June 2013 citing the persistently high food inflation even though general inflation has declined.