BUZZ — India's bank liquidity surplus seen dipping below 1% of deposits next week

India's banking system liquidity surplus is expected to ease below 1% of total deposits in the banking system next week, traders say "The surplus has already fallen while GST outflows are scheduled for early next week, which will drag it down further," trader with a state-run bank says Surplus stood at around 3.4 trillion rupees ($35.77 billion) as of October 13, which is about 1.2% of deposits Outflows towards GST typically take place around the 20th of each month Surplus to further dip due to RBI's rupee-supportive measures, after it allowed oil companies to borrow dollars and raised margin requirements for hedging transactions Surplus has eased 70% from its peak of 11.16 trillion rupees hit on September 6 ($1 = 95.0450 Indian rupees) (Reporting by Dharamraj Dhutia) ((dharamraj.dhutia@tr.com)