The statement noted that the tight liquidity conditions had led to overnight call money rate breaching the policy corridor on several occasions. Liquidity shortfallHowever, there was a huge shortage of liquidity between September 15 and 26 averaging ₹1.18 lakh crore. In fact, as on December 26, liquidity deficit was in excess of ₹1.8 lakh crore. What explains the surge in the liquidity deficit since mid-September of this fiscal? In terms of value, in 2018-19, the RBI has injected liquidity worth ₹1.62 lakh crore of which ₹1.35 lakh crore has happened since September.

Source: The Hindu January 06, 2019 16:57 UTC