MUMBAI: The Indian cash rate edged up on Monday on demand for funds at the start of a new two-week reporting cycle, with heavy debt supplies for this week causing some jitters in the market .

The one-day call rate closed at 8.80/8.90 percent, higher than Wednesday's close of 8.70/8.75 percent for five-day funds.

"It is a new fortnight so banks are building reserves aggressively," said a dealer with a large private bank.

"Liquidity conditions have improved marginally but a heavy supply pipeline is keeping the market edgy," he said.

Liquidity conditions in the banking system have improved on government spending in the new fiscal year that began this month, although debt sales worth at least 290 billion rupees this week are seen weighing.

Banks borrowed 1.07 trillion rupees from the central bank's repo window on Monday compared with 1.60 trillion rupees on average in the last three months.

The market is waiting for the Reserve Bank of India's monetary policy announcement on April 17 for further cues.

Volume in the call money market was 268.49 billion rupees, compared with 229.91 billion rupees on Wednesday, while the weighted average rate was 8.99 percent versus 9.24 percent previously.

Volume in the collateralised borrowing and lending obligation (CBLO) market was 453.15 billion rupees, higher than 433 billion rupees on Wednesday, with the weighted average rate at 8.07 percent, lower than 8.22 percent previously.

In the inter-bank repo market, volume was 128.83 billion rupees with the weighted average rate at 8.59 percent.