India's banking system liquidity falls to lowest level since late June amid credit growth and central bank FX actions

Mumbai's banking system liquidity has reached its lowest point since late June, recording a deficit of ₹2,884 crore on Wednesday. This deficit is primarily attributed to increased credit growth and interventions by the Reserve Bank of India (RBI) in the foreign exchange market. Economists anticipate that the RBI's actions will further exacerbate this liquidity gap in the coming days.