RBI relaxing borrowing limit in interbank call market no ‘game changer’: Traders

The Reserve Bank of India (RBI) has allowed banks greater flexibility to set their own limits to borrow from the interbank call money market to facilitate better management of liquidity. Banks can presently borrow all of their capital funds on a daily average basis in a fortnight, and 125% of capital funds on any given day. Despite speculation that this could increase liquidity, experts suggest that smaller banks could be more likely to borrow more via this window rather than larger ones.