Question
What was the system liquidity in the banking system as
of August 3, according to RBI data?Solution
System liquidity refers to the total surplus or deficit funds in the banking system. As of August 3, liquidity stood at ₹4.09 lakh crore, indicating a strong surplus. This high liquidity level was maintained despite the RBI conducting a $5 billion USD/INR swap that drained ₹43,000 crore from the system, demonstrating robust capital availability in Indian banks.
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