When people don’t take loans, banks and financial institutions have kept around 2.5 trillion rupees in the central bank. Even though there is high liquidity in the banking system, if the loans are not being taken, banks have kept around 2.53 trillion rupees in the central bank. The central bank has allowed banks to deposit the said amount at a 3% interest rate under the permanent deposit collection facility initiated by Falgun.

According to the central bank, banks and financial institutions have deposited money in the central bank four times. Among the amount deposited, currently there are 96 billion and 15 crore rupees in the central bank.

Banks have the facility to keep a large amount in the central bank under the facility where banks have to keep a minimum of 20 crore rupees, and in excess of 5 crore compared to that, the remaining amount must be kept without any deduction. In this way, banks have deposited funds in the central bank, and the central bank has set a 3% interest rate on the deposits.

According to the central bank, this facility will be available for four days. However, the central bank has informed us that in the case of payment falling on a bank holiday, payment will be made on the preceding day, and arrangements have been made to pay for less or more than the stipulated period. After collecting funds in the local deposit facility, banks will not be able to calculate the said amount in the mandatory cash reserve.

However, according to the directive, the calculation can be made based on the required legal liquidity ratio and the ratio of liquid assets to total assets.