Mumbai: The tight liquidity situation in the banking system is easing with the beginning of the new financial year. Banks on Tuesday parked Rs96,160 crore of excess funds, the highest since the first week of February, with the Reserve Bank of India (RBI). On 5 April, the first business day of the new fiscal, banks had parked Rs49,145 crore of excess funds with RBI.
Only last week, as fiscal 2010 was coming to a close, banks resorted to borrowing money from RBI owing to the advanced tax outflow of about Rs45,000 crore. Banks’ borrowing from RBI peaked at Rs6,640 crore on 31 March, the highest in fiscal 2010 .