4 min read.Updated: 01 Apr 2016, 04:27 AM ISTIra Dugal
Rising currency in circulation along with slowing deposit growth is worsening the liquidity crunch
The rate at which currency in circulation is increasing in the Indian economy is moving up. The rate at which deposits in the banking sector are growing is moving down. Together, these two factors are worsening liquidity conditions in the banking sector, putting banks and the Reserve Bank of India (RBI) in a spot.