RBI resolves technical issue with reserve maintenance system for banks, traders say

The RBI has resolved the technical glitch in a system that enables lenders to manage their day-to-day liquidity needs, after the system failed to work on Tuesday, four treasury officials said on Wednesday.

"The issue has been resolved at the central bank's end and the transactions are going through," a senior trader with a state-run bank said.

An automated sweep-in and sweep-out system (ASISO), using which banks park funds at the central bank's Standing Deposit Facility and borrow at its Marginal Standing Facility, went down in its first such failure since it was set up nearly four years ago, with funds neither debited nor credited by the Reserve Bank of India, treasury officials had said earlier.

The treasury officials declined to be named as they are not authorised to speak to media.

The central bank did not immediately reply to a Reuters' query seeking comment.

As of 1:00 p.m. IST on Wednesday, the RBI did not publish a daily money market operation statement, which has data on liquidity position of the banking system, and is generally published at 9:00 a.m. IST.

Traders expect the data to be published before the end of the session.

Indian banks need to park 4.5% of their net deposits with the central bank and must maintain at least 90% of this requirement every day.