......The liquidity deficit situation till the month of May remained high. Banks’ borrowing through the liquidity adjustment facility (LAF), which helps them to manage temporary mismatches, remained above RBI’s comfort level of 1 per cent of net demand and time liabilities (NDTL). But since the beginning of June, there has been some moderation in the LAF borrowing to around Rs 63,000 crore, below 1 per cent of NDTL. Also, the RBI has infused Rs 7,000 crore through open market operations in June. However, the impact of this on liquidity may be offset by the RBI’s interventions in the forex market. .......
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