Vikas Kumar ETBFSI October 13, 2022. 08:00 IST
Amid the festive season, liquidity in the bankding system has been tightening sharply resulting to demand of capital. Last month, liquidity in the system slipped into deficit for the first time in three years. In October, the system slipped into a liquidity deficit for the first time on October 10. With the deficit in liquidity, there will be pressure on banks to raise more deposits. This could result in higher interest rates.
The central bank has already raised the benchmark policy rate by 50 basis points.
Demand for capital by Fintechs
There has been a demand for capital by the Fintechs amid the festivities as the pressure has been mounting for the businesses to stock the latest trends and boost their inventory to handle the spike in consumer demand. The industry leaders have noted that there has been a surge in demand from customer segment like the pre-Covid years. Amid the rising demands, and with the pre-Covid years. Amid the rising demands, and with the festive season on, the pressure is mounting for businesses. Nirav Choksi, Co-founder and CEO of CredAble had mentioned that the lack of access to instant business loan and the drastic effects of the pandemic has created issues for the businesses to function.
Debarshi Dutta, Co-Founder, CEO of Ayekart said for fintech, festive season is an opportunity to increase its client base and multiply its business
st month, liquidity in the system slipped into deficit for the first time in thr ..