MUMBAI Jan 30 The Reserve Bank of India's daily liquidity adjustment facility will not turn into surplus even if the government spends all its surplus cash balance, executive director Deepak Mohanty said on Wednesday.
Mohanty was speaking to analysts a day after the central bank cut its key repo rate and banks' cash reserve ration by 25 basis points each.
On Wednesday, banks borrowed 1.04 trillion rupees ($19. 5 billion) from the RBI's repo window, significantly higher than its comfort level of deficit. ($1=53.4 billion) (Reporting by Shamik Paul)