RBI says to keep liquidity in 'moderate surplus mode' in April-September

India's banking system liquidity is expected to be in "moderate surplus mode" in the first half of 2018/19, the central bank's Deputy Governor Viral Acharya said on Thursday after the bank's monetary policy meeting.

The Reserve Bank of India kept its policy rates on hold for the fourth straight meeting and retained its "neutral" stance even as inflationary pressures have eased more than expected.

"The evolving liquidity conditions will determine our choice of instruments for transient and durable liquidity management," Acharya said.