UPDATE 1-Indian cash rates end higher on tight money

(Updates to close)

MUMBAI Aug 6 (Reuters) - Indian overnight cash rates ended higher on Wednesday amid tight money conditions and high demand for funds in the first half of the reporting period.

Call rates INROND= ended at 9.20/9.30 percent, higher than its previous close of 9.05/9.25 percent on Tuesday.

"The central bank will keep cash tight and call rates above 9 percent otherwise it will negate all measures to bring down inflation," said Anoop Verma, associate vice president at Development Credit Bank.

"The system is short of about 200 billion rupees and we have outflows of another 100 billion on Monday," he added.

The central bank is selling 45 billion rupees worth of treasury bills later in the day, the outflows towards which will take place on Friday.

It will also sell another 100 billion rupees worth of government bonds on Friday, the cash settlements for which will take place on Monday.

The weighted average rate in the call money market was 9.18 percent, while collateralised borrowing and lending obligation (CBLO), a secured form of money market lending, was 9.01 percent, according to the Clearing Corp of India (CCIL).

Volume in the call money market was 147.33 billion rupees and in CBLO it was 257.36 billion rupees, CCIL data showed.

The central bank did not receive any bids at its reverse repo auction for the third consecutive day on Wednesday, while it infused 148.55 billion through the repo route, indicating the extent of cash crunch. (Reporting by Swati Bhat; Editing by Ramya Venugopal)