Call money closes low at 7.90-8.00 per cent

Mumbai, Jan 12 (UNI) Call money today closed lower at 7.90-8.10 per cent, compared with the days opening of 8.00-8.20 per cent.

The price still floats at 8 per cent as the Central Bank is still in tightening mode, with the most recent action of an expected hike in the cash reserve ratio announced in early December.

Banks need to keep 25 per cent of their deposits in bond holdings under a statutory liquidity ratio (SLR). A cut in the SLR will only compromise the RBI's credibility.

A reduction in the requirement will release more cash for loans, growing at an annual 30 per cent, brokers added.

UNI