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India's bank cash crunch likely temporary, analysts say
The Economic Times· 2025-09-22 18:48
The liquidity surplus declined to 70 billion rupees ($794 million) on September 21, the lowest since late March, after nearly 2.6 trillion rupees moved out due to income tax and goods and services tax payments. The amount of money in the banking system influences market interest rates, including those on consumer loans. "We expect this shortage to be temporary, as a pickup in government spending should help neutralise its impact over the coming week," said Vivek Kumar, an economist with Quanteco Research, ...