Once bitten, twice shy: Banks wary of parking funds with RBI after rate jolt

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Indian banks will likely be cautious at the Reserve Bank of India's reverse repo auction. A recent cash crunch forced banks to borrow overnight at high rates. Banks had earlier parked Rupees Two Lakh Crore at the seven-day variable rate reverse repo auction. Now, lenders may re-evaluate parking funds in the seven-day VRRR.