The proceeds will be used by the promoters to pre-pay debt, banking sources said
The data also showed $11.9 billion in borrowing from the Fed's new emergency backstop known as the Bank Term Funding Program, which was launched Sunday
Consider laddering to ensure liquidity and to avoid reinvestment risk
They suggested that the central bank could look at a reasonable cap to the FLDG models, given RBI's concerns of around build-up of systemic risk and 100% risk transfer rather than banning it outright
The fall in the liquidity surplus is owing to multiple factors, including the RBI's interventions in the forex market and a sharp pick-up in bank credit growth, which is currently at nine-year highs
Liquidity in India's banking system is likely to remain in deficit in the second half of this financial year as credit growth picks up and the circulation of currency notes rises, analysts said
Days of easy money over as credit growth rises
India's banking system liquidity has slipped into deficit for the first time in nearly 40 months, according to the Reserve Bank of India
GST outflows have also pushed up interbank cost of funds
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Net daily liquidity absorbed from banks on July 9 was Rs 4.6 trillion, data released on Monday showed
RBI meant strict business, with a focus on alleviating financing constraints for economic stakeholders at the grass root level bearing a disproportionate burden of the ravaging Covid second wave
Most small borrowers don't have other standard KYC documents and hence Aadhaar authentication becomes critical
From about 3.5 per cent at the start of December to 6 per cent now, three-month forwards rates are most affected
As of Monday, the banking system liquidity was at a surplus of Rs 4.95 trillion, as against Rs 6.13 trillion a week earlier, on the eve of the deadline for the third instalment of advance tax
Economists say inflation would average above 6 per cent this fiscal, and is unlikely to come down below 5 per cent before March.
Instead of pushing up inflation, the huge surplus liquidity, bordering at Rs 7 trillion daily, is helping in policy rate transmission and aiding govt to borrow at a cheaper rate
Risks due to impact of coronavirus pandemic on borrowers' repayment capabilities and the effects of the moratorium on collections, says ratings agency
Slippage of 20% on loans under moratorium to weigh on capital ratios
Decision taken based on requests received from banks; exposures under this facility will not be reckoned under large exposure framework or for determining priority sector targets