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Commercial banks in
The RBF board decided at a meeting this week to increase the Statutory Reserve Deposit (SRD) requirement from five percent to seven percent effective December 7.
All licensed commercial banks in
“Raising the SRD is expected to supplement recent RBF measures to ensure liquidity in the banking system is maintained at an acceptable level while safeguarding
“The amount of liquidity in the banking system has been on an upward trend, rising significantly in the September quarter by around $170 million to around $350 million from levels of below $30 million in early April,” said RBF Governor Sada Reddy.
With bank liquidity expected to remain above $200 million, there should not be any upward pressure on interest rates, said Reddy.
He urged banks to “utilise the ample funds available, to lend to priority sectors which will support growth, exports and investment”.







