India's banks cash surplus ₹5.05L/cr after payouts and FCNR(B) inflows
India's banks just saw their cash surplus jump to ₹5.05 lakh crore on August 30, the highest in months.
This spike is thanks to the government paying out salaries and pensions at month-end, plus a big boost from people parking dollars in special FCNR(B) deposits.
Liquidity expected near ₹4-4.5L/cr
Banks have raised $65.4 billion through these FCNR(B) deposits using an RBI swap scheme, which basically means more rupees are flowing into the system.
Experts think this could go up to $90-95 billion soon, adding even more liquidity.
But despite this rush of cash, things were tight for most of August because people withdrew money and RBI stepped in to steady the rupee.
To keep things balanced, RBI held 23 reverse repo auctions where banks parked their funds with the RBI.
Expect liquidity to settle around ₹4-4.5 lakh crore as we move into the second half of September and October, with some ups and downs ahead.