Mumbai, Oct. 23 -- Overall financial conditions remained benign in October (up to 16th), after remaining mildly tight in the latter half of September, primarily due to easing in the money, equity and corporate bond markets.

System liquidity remained in surplus during the second half of September and in October (up to 16th), although an increase in government cash balances, driven by advance tax and GST collections, briefly pushed it into deficit during September 22-24.

Since then, government spending and the release of primary liquidity from the 25 bps reduction in the cash reserve ratio25 restored liquidity to surplus conditions.

Overall, average net absorption under the liquidity adjustment facility declined to Rs.1.0 lakh crore duri...