The Hindu Business Line : Call rates rise to 4.5-5%

The inter-bank call rates rose to the highest level this month to close at 4.5-5 per cent on Tuesday against the previous close of 2.75-3.25 per cent due to tight liquidity condition. "The surplus cash has been sucked out from the system by way of auctions. The central bank has also announced auction of Treasury bills worth Rs 11,000 crore for this week which will further tighten the liquidity conditions," said a dealer with a private bank.

The Reserve Bank of India received bids worth Rs 67,530 crore through the reverse repo window under the two sessions of Liquidity Adjustment Facility while it accepted bids worth Rs 2,996 crore. The central bank did not receive any bids through the repo window. In the first one-day reverse repo auction, the RBI received 38 bids for Rs 48,350 crore while it accepted bids to the tune of Rs 1,995 crore. In the second one-day reverse repo auction, the RBI received 27 bids for Rs 19,180 crore while it accepted Rs 1,001 crore. There were no repo bids in the first and second one-day auctions. The CBLO market saw 422 trades aggregating Rs 25,663.4 crore in the 2-6.1 per cent range.

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