In which month of 2023 did the liquidity of the Indian banking system fall into a deficit?
August.
2023 August
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Since the end of March, the Reserve Bank of India's (RBI) temporary withdrawal of liquidity and tax outflows have had an impact on banks' funding, causing the liquidity of the Indian banking system to slip into a deficit in the month of August. According to RBI data, the liquidity of the banking system was in deficit as of August 21 by 236 billion rupees ($2.84 billion). At the beginning of the month, the liquidity surplus reached a 13-month high of 2.8 trillion rupees, but it has since been declining.