<h1>RBI Allows Banks to Borrow More Amid Cash Crunch Due to IPOs and Credit Season, Eases Bond Holding Rules.</h1> The Finance Ministry announced that the Reserve Bank of India (RBI) has permitted banks to borrow additional funds to alleviate a cash shortage caused by numerous IPOs and an active credit season. This move allows banks to borrow even if they fall short of the requirement to hold 25% of deposits in government bonds by up to 2%. The RBI will maintain this liquidity through a special Liquidity Adjustment Facility, which involves lending and borrowing against government securities. This measure aims to ensure sufficient liquidity in the financial system.