The Indian banking system’s liquidity deficit reached its highest level in nearly six months, driven by advance tax payments by companies and potential dollar sales by the central bank to stabilize rupee volatility. According to a Bloomberg Economics index, banks borrowed 1.5 trillion rupees ($17.7 billion) from the Reserve Bank of India. The liquidity shortfall could deepen further as the RBI may step up interventions in the currency market to counter rupee depreciation, which has been pressured by a widening trade deficit and a strengthening dollar, pushing the rupee to a record low