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How the Indian banking system works and money is created – An explainer

Updated : July 27, 2020 10:36 PM IST

In case of a CRR shortfall, banks can convert excess SLR/ HQLA into CRR at the RBI’s LAF repo window.
The banking system does not need liquidity surpluses to disburse fresh loans, because fresh loans create their own fresh deposits.
How the Indian banking system works and money is created – An explainer

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