I-T dept refunds Rs 20,000 crore to taxpayers in April
The Income Tax department has returned about Rs 20,000 crore in refunds so far in April, a finance ministry official said on Wednesday.
"So far in April, we have made refunds in 20 lakh cases worth Rs 20,000 crore," the official, who declined to be named, told Reuters.
Tax refunds, in addition to robust government spending, have improved liquidity conditions in the banking system.
Banks borrowed a total of Rs 39,525 crore from the RBI's two repo auctions on Tuesday.
The short-term money market rates like the three-month certificates of deposit have also eased to 8.8% from 10.15% in March.
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