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The recent improvement in liquidity with banks is unlikely to persuade Reserve Bank of India to strike the issue off its list of concerns, economists and bankers said this week. Last week, the first in 13, banks cash deposit with the central bank exceeded borrowing in the liquidity adjustment facility (LAF). The LAF transactions are a ready gauge of banks liquidity. This development was probably set off by the government spending, economists said, noting that on August 21, the government paid Rs 140 billion subsidy to public sector oil retailers to bridge the cost-sale price gap. Liquidity is coming in ...