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RBI to meet bankers next week to discuss liquidity management framework

It met economists on Thursday for pre-policy consultation; economists divided over change in stance

RBI, Reserve Bank of India
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Since January, the central bank has actively managed liquidity by adjusting the volume of repos on a daily basis and holding multiple auctions within a single day. | (Photo: Reuters)

Anjali Kumari Mumbai

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The Reserve Bank of India (RBI) will meet bankers on April 3 to discuss its liquidity management framework, said multiple sources aware of the development. It is widely expected that the RBI may announce some changes in its liquidity management framework during the April monetary policy committee (MPC) meeting.
 
Sources further said that banks want clarity on the RBI’s comfort with liquidity in relation to Net Demand and Time Liabilities (NDTL), which is expected to be discussed at the meeting. The RBI's "comfort" level with liquidity is typically reflected by the amount of surplus liquidity it permits in the banking