New Delhi: The Reserve Bank of India (RBI) is comfortable with the current liquidity situation at Indian banks, one of its deputy governors told reporters on Monday.

Subir Gokarn, Deputy Governor, RBI. Photo: Abhijit Bhatlekar/ Mint

However, cash conditions may tighten from the next week due to advance tax outflows.

“For the last several weeks, liquidity levels have been in our comfort zone. If signs of stress emerge particularly, if they persist, then we will take that into account," said Subir Gokarn, a deputy governor at the RBI.

He also said India’s current dollar reserves are not “uncomfortable".

India’s dollar reserves have fallen to $290.46 bn from $320.79 bn a year ago on dollar sales by the central bank to protect a weak rupee.

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