Liquidity

Says AI can help the regulator shift to 'proactive' monitoring from 'periodic' monitoring; Sebi is also set to propose changes to the closing auction framework

Central bank will conduct a 26-day VRRR auction on Friday to absorb surplus banking-system liquidity; funds placed in the auction will be reversed on October 7

India must now choose among currency appreciation, inflation, bank losses, indirect public exposure and an expensive sterilisation programme

Bids worth ₹2.59 trn received against ₹7 trn notified

The Reserve Bank ​of India received offers worth ₹3.53 trillion at an overnight auction, right ‌after banks parked ₹2.59 trillion through a 30-day auction

Fx reserves swell to nearly $741 bn, driven by rush of swap dollars

The Reserve Bank of India (RBI) on Friday absorbed over Rs 6.02 lakh crore from the banking system through two variable rate reverse repo (VRRR) auctions as surplus liquidity remained at a record high. The central bank received and accepted bids worth Rs 5,41,975 crore in a three-day VRRR auction against the notified amount of Rs 7 lakh crore. The auction was conducted at a cut-off rate of 5.24 per cent. In another three-day VRRR auction, against a notified amount of Rs 1.5 lakh crore, banks parked Rs 60,419 crore with the RBI, also at 5.24 per cent. Together, the two operations helped the RBI absorb Rs 6,02,394 crore of surplus liquidity. The RBI has stepped up liquidity absorption operations as the banking system has been flooded with funds following large inflows through the special FCNR(B) deposit scheme. Currently, liquidity in the banking system is estimated to be in surplus of around Rs 10.32 lakh crore as on September 3, according to the RBI's data. The RBI's special fore

Muted response to fresh ₹10 trn VRRR auctions; rupee appreciates to two-month high

Banks parked Rs 3.84 trillion against the Rs 10 trillion notified in Monday's VRRR auctions, while the benchmark 10-year government bond yield rose to 6.95 per cent

India's banking-system liquidity surplus has averaged more than 3.4 trillion rupees ($36 billion) so far in August and is expected to expand further

The RBI may use an incremental CRR to absorb rising surplus liquidity before raising the repo rate, as core liquidity could approach ₹10 trillion in coming weeks

The central bank absorbed ₹1.41 trillion through seven-day and overnight VRRR auctions at 5.24 per cent, and announced a ₹1.75 trillion two-day auction for Tuesday

RBI receives cumulative bids of Rs 1.91 trillion against the notified Rs 1.5 trillion as banks seek higher returns amid surplus liquidity and softer overnight rates

Strong bank demand at RBI's VRRR auctions highlights surplus liquidity in the system, as the central bank seeks to keep overnight rates aligned with its 5.25% repo rate

The Reserve Bank will conduct a seven-day variable rate reverse repo auction after surplus liquidity in the banking system crossed Rs 3 trillion, keeping overnight rates close to the SDF

Governor Sanjay Malhotra says surplus liquidity is likely to peak around September before being absorbed through higher currency circulation, reserve requirements and maturing forex forwards

Banks can now price bulk deposits based on liquidity characteristics under the LCR framework, while continuing to follow uniform interest rate norms

Annuitise only essential expenses, retain liquidity and compare payout options and rates before purchase

Improved trading volumes and a recovery in small-cap stocks have reduced liquidity stress in small-cap mutual fund schemes to the lowest level since March 2024

The central bank held two variable rate repo auctions after banking system liquidity surplus dropped below Rs 1 trillion, while the 10-year bond yield rose 3 basis points