Cash rate is below to repo rate.

The overnight cashrate stood at 7.25/7.30 per cent versus previous close of 7.00/7.05 per cent and repo rate of 8.00 per cent. Weighted average call rate fell to 8.01 per cent from 8.13 per cent on Tuesday. 

Traders say some government spending helped ease cash conditions in the market

Lack of demand for funds from banks due to lowercredit needs also pushed down cash rate. Banks borrowed only 81.18 billion rupees ($1.34 million) from RBI on Wednesday, the lowest since August 5.

Funds from banks' 126.44 billion rupees reverse repo auction with the RBI on Tuesday should also have been returned on Wednesday, traders added. 

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