Year-on-year growth in non-food credit continues to decline and has now slipped to 16.8%. It’s yet another indication of the economy slowing sharply. Reserve Bank of India data also show that while bank deposits fell by Rs 37,469 crore in the fortnight to 16 December because of advance tax outflows, bank credit went up by Rs 31,562 crore. That is what has led to the current cash crunch in the money markets.
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