Indian rupee coins are displayed (Photographer: Adeel Halim/Bloomberg)
A period of tight liquidity in the banking system, which lasted for over a year, was often blamed on the sluggish inflows into bank deposits. Deposit growth was running below credit growth and that left banks feeling the pinch. A consequence of the tight liquidity was that banks were unable to pass on the interest rate cuts announced by the Reserve Bank of India.This slower deposit growth was blamed on a number of factors, among them...