Call money closes at 9.50-10 pc

Mumbai, Apr 19 (UNI) Ample cash position helped call money to ease further, which ended at 9.50-10 per cent today compared to the previous close of 11-12 per cent on Wednesday.

During the day, it touched a high of 10.50 per cent and a low of 9 per cent.

The rates had earlier risen following Wednesday's increase in reserve requirements for banks that drained an estimated Rs 7,750 crore from the banking system. The second leg of the increase in the reserve requirements will take effect on April 28.

Further, the Reserve Bank of India will sell Rs 3,000 crore (USD 715 billion) of market stabilisation bonds. Rs 7,700 crore government bond issue will mature this weekend and the redemption funds will be arriving in the market by next week which has contributed to ease the concerns and extended squeeze on cash, dealers said.

The Central Bank will review its monetary policy on April 24. It has raised reserve requirements three times since early December and its short-term lending rate twice in 2007 to try to curb inflation.

UNI