Indian banks cash shortage 1.50 lakh crore rupees RBI | Cash shortage of Rs 1.50 lakh crore in the country’s banks: Interest on deposits is increasing; Banking loan-deposit ratio 80%, it should not be more than 73%

The shortage of cash in the country’s banks has once again increased. In the second fortnight of December, the cash shortage in the country’s banking system reached Rs 1.5 lakh crore. To deal with this, banks are increasing deposits.

As a result, deposit interest rates have reached 7.50%. Some banks have extended the last date of new schemes with higher interest rates and some have launched new FD schemes.

Banks like IDBI are giving higher interest up to 0.65% to senior and super senior citizens. Due to this, the interest rates for super senior citizens have gone up to 8.05%.

In the first week of December, the cash surplus of banks was Rs 1 lakh crore. In the subsequent fortnight, liquidity declined due to withdrawals to pay taxes and RBI intervention in the foreign exchange market.

Siddharth Sanyal, Chief Economist of Bandhan Bank, said that now the pressure to increase deposits by increasing the rates has increased.

Dollar-rupee swap resorted to to increase cash in banks Banks had appealed to the Reserve Bank to take measures to increase liquidity. After this, RBI used dollar-rupee swap last week. RBI used swaps worth about $3 billion.

Due to this, banks got cash of about Rs 25,970 crore. The maturities of the swaps are 3,6 and 12 months. But this is not enough. He needs about Rs 1.25 lakh more cash.

Banks are distributing loans of ₹80 for every ₹100 deposited. According to Reserve Bank data, bank deposits grew at the rate of 9.8% till December 27, 2024. During this period, credit growth i.e. the pace of loan distribution was 11.16% annually.

Total deposits reached Rs 220.6 lakh crore and loans reached Rs 177.43 lakh crore. That means banks are distributing loans of Rs 80 for every Rs 100 deposited.

This ratio of credit to deposit was 79% in 2023, which should be 73%.