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Banking liquidity surplus shrinks to Rs 541 crore as cash crunch increases

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Core Development: Banking liquidity surplus shrinks to Rs 541 crore as cash crunch increases
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Market & Financial Impact: Liquidity surplus in the banking system was reported at ₹541 crore as of October 21. Banks have increased fund parking to meet their daily cash reserve requirements of 99%. The weighted average call rate (WACR) rose to 5.65%, which is 15 bps higher than the repo rate. The Reserve Bank of India conducted variable rate repo operations to manage systemic liquidity.
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Actionable Insight: 🟢 Bullish Trigger: Positive business expansion or earnings beat may attract institutional and retail buying.

The Reserve Bank of India's (RBI) variable rate repo (VRRR) operations to infuse ₹50,000 crore liquidity garnered bids of ₹1.62 lakh crore amid a cash crunch in the system.

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Official Publisher Attribution: This report is aggregated from Economic Times. ZeroLive provides live aggregation, automated sentiment synthesis, and exchange disclosure monitoring for retail market participants.
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