Interbank call rates were trading at 10.10/20% against its previous close of 10.00/10.15% on Monday, closely tracking the central bank's emergency funding rate of 10.25%, as the higher daily cash reserve ratio maintenance as mandated by the central bank came into effect from Monday.
The RBI, in its latest attempt to shore-up the Indian currency, reduced the liquidity adjustment facility for each bank from 1% of total deposits to 0.5% and also asked banks to maintain higher average CRR (cash reserve ratio) of 99% of the requirement on daily basis as against earlier 70%.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 37954 crore through repo window on July 30, 2013, while banks, borrowed Rs 36593 crore through repo window and parked Rs 90 crore via reverse repo window on July 29, 2013.
The overnight borrowing rates touched a high and low of 10.25% and 10.00% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 10.02% on Tuesday and total volume stood at 10554.51 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 10.10% on Tuesday and total volume stood at Rs 52360.30 crore, so far.
The indicative call rates which closed at 10.10/10.15% on Monday were contributions made from Andhra Bank, AXIS Bank, Bank of America, Bank of Baroda, Bank of India, Canara Bank, J P Morgan Chase, Citibank N.A., Corporation Bank, Credit Agricole Bank, Indusind Bank, ICICI Bank, ICICI Securities, IDBI Bank, Jammu and Kashmir Bank, Punjab National Bank, RBS, Societe Generale, Standard Chartered, so far
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