Liquidity

Economists expect the RBI’s Monetary Policy Committee to maintain the status quo on interest rates in the December review. With growth strong and inflation low

The RBI's VRR operations are intended to infuse liquidity into the financial system and anchor short-term money market rates closer to the policy repo rate

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Experts said the liquidity crunch is expected to be temporary and will pick up on the back of government expenditure

The Reserve Bank of India is comfortable with a liquidity surplus of around 1% of banks' deposits, which is roughly 2.5 trillion rupees

Sebi's revised proposal on close auction session (CAS) for equity cash segment includes a 20-minute session and expands its applicability to stocks with sufficient liquidity

RBI accepts Rs 1.82 trillion at 8-day VRRR auction as banks roll over maturing funds from earlier operations amid surplus system liquidity

BSE revises SME migration norms with higher profitability, shareholder, and liquidity requirements to enhance transparency, investor protection, and market integrity

RBI will hold two VRRR auctions on Friday with six-day and three-day tenures to absorb excess liquidity from the banking system, which has a surplus of Rs 4 trillion

System liquidity, as measured by the net position under the liquidity adjustment facility, has been in surplus, averaging ₹3 trillion per day since the last MPC meeting

Surplus liquidity in the banking system reaches Rs 4.09 trillion, with the rupee slipping to 87.66 per dollar amidst oil demand and trade tensions

With WACR and tri-party repo rates climbing, banks park only ₹13,075 crore against RBI's ₹50,000 crore offer in overnight VRRR auction

The policy, called fixed rate liquidity operations, will help banks manage their needs better, several bankers proposed to the RBI in meetings held over the last few months

The central bank's move follows rising liquidity in the system that has pulled overnight rates below the repo rate; WACR and tri-party repo rates remain under pressure

Liquidity in the system had a deficit of Rs 2.4 trillion towards the end of the last financial year (on March 23); it is now in surplus of around Rs 3 trillion

Credit rating agency Fitch Ratings says ₹5.6 trillion liquidity infusions and cash reserve ratio cut will support loan growth, though banks may see short-term pressure on margins

Banks park only ₹57,450 crore in RBI's ₹1-trillion three-day VRRR as they conserve liquidity ahead of GST payments and fortnightly reporting requirements

Nomura reports that the RBI may shift its liquidity management target from WACR to TREPS or a SORR-like composite, in line with global best practices and increased volumes in secured money markets

Excess liquidity could also incentivise the banking system to extend loans at lower rates

On 4th July, the Supreme Court refused to intervene in a plea filed by HDFC Bank CEO Sashidhar Jagdishan to quash an FIR against him on a complaint by Lilavati Trust.