RBI actions reduce India's banking liquidity surplus by 55%
pre-market1 source ↓written by the desknot a recommendation
- $51.36 billion
- ₹4.92 trillion
- from a peak
- 55%
- a peak
- ₹11.16 trillion
- raised
- $133 billion
The Reserve Bank of India has effectively reduced the banking system's liquidity surplus to ₹4.92 trillion ($51.36 billion), down 55% from a peak of ₹11.16 trillion. This was achieved through bond sales and foreign exchange swaps, addressing inflationary concerns amid rising oil prices and a weaker rupee.
• Excess liquidity was previously inflated by $133 billion raised via the RBI's diaspora deposit scheme.
• Advance tax and GST payments also contributed to the liquidity drain.
Not investment advice. For informational purposes only.