The build-up of inflationary pressures on administered prices was also not as high as expected, in line with lower adjustment in fuel prices and transportation fares. Meanwhile, core inflation was maintained at a low level in line with lower than expected second-round effect of fuel price adjustments and a lack of strong inflationary pressures from the demand side.
Banks, under section 42 of the Reserve Bank of India Act, 1934, are required to maintain minimum liquid assets (basically Government securities – both Central Government securities or G-Secs, and sub-sovereign securities called State Development Loans (SDLs)) as a percentage of Demand and Time Liabilities (DTL).