Mumbai, Jan 3 (UNI) Inter-bank call money rates closed higher today at 6.10-6.25 per cent as against the previous close of 2.75 per cent.
During the day, it touched a high of 6.50 per cent and a low of 5.00 per cent.
Liquidity had improved in a big way on Wednesday, following the payment of interests on special deposit schemes.
Dealers said the government has started spending, which would bring back funds mopped up towards advance taxes last month.
However, in a bid to absorb excess liquidity in the system, Reserve Bank of India, through one day reverse repo, received 38 bids worth Rs 40,630 crore.
Call rates, at which banks borrow and lend from the market, was ruling higher at 7-8 per cent since the outflows towards the advance tax payments mid of December last year.
Call money market dealers said rates might remain at these levels till the time Apex bank announces any major auction or the market stabilisation scheme (MSS).
UNI AD OBB SKB1811