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Banks See Gradual Rise In Cost Of Funds

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September 24: The cost of funds for the banking system might go up after the RBI hiked repo rates last Friday. Some bankers have indicated to us that they see a significant rise in the cost of funds. This is contrary to the central bank’s claim that a reduction in MSF and daily CRR limit will in fact result in the opposite. In this segment, we decipher the RBI steps and its impact on the cost of funds.