Page 2 - Liquidity

Banking system liquidity surplus reaches ₹4.09 trillion amid govt spending

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

Muted response to RBI's VRRR as overnight rates rise, reducing arbitrage

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

RBI unlikely to revive daily fixed-rate lending despite market demand

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

RBI to conduct 3-day VRRR auction Tuesday to absorb ₹50,000 crore

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

How much liquidity does RBI want: Appropriate, adequate, or abundant?

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

RBI's liquidity steps to aid 100 bps rate cut transmission in 2025: Fitch

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

RBI's 3-day VRRR sees weak demand amid GST outflows, reporting week

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

RBI likely to replace WACR with TREPS as operative target, says Nomura

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

Managing excess liquidity: Financial markets need more clarity now

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

HDFC CEO's Plea | Loan Woes | Banks Seek Norm Relief | Liquidity Surges | Asset Quality at Best

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.

India's liquidity surplus unlikely to lift credit growth, says JP Morgan

While surplus liquidity influences overnight borrowing costs, a recent analysis by the firm showed it does not impact credit or deposit growth in the economy

Banking system liquidity hits 3-year high at $3.74 trillion: RBI data

Banking system liquidity rose to a net surplus of Rs 3.74 trillion, the highest since June 2022. The market is now awaiting action from the RBI to manage the surplus and ensure monetary transmission

More VRRRs likely as banking system liquidity surplus hits ₹3.31 trn

Despite RBI's VRRR auction, liquidity surplus rose to its highest in weeks, keeping overnight rates near the SDF rate and prompting expectations of further auctions

RBI's surplus fund withdrawal set to dampen money market sentiment

The Reserve Bank of India will conduct a seven-day variable rate reverse repo (VRRR), for Rs 1 trillion ($11.64 billion) on Friday, its first such operation since November-end

RBI to conduct seven-day VRRR auction on Friday to mop up liquidity

The average liquidity surplus in the system over the past two weeks-reflected by the daily absorption by the RBI-was around Rs 2.5 trillion

RBI skips 14-day main liquidity operation for third fortnight in a row

RBI holds back 14-day operation for third fortnight, despite ₹3-3.5 tn tax outflows expected, citing adequate liquidity and short-term rate stability

RBI skips 14-day main liquidity operation for third straight fortnight

Market participants had expected the RBI to conduct a 14-day variable rate repo auction on Friday on account of the upcoming tax outflows which are seen sucking out rupee funds from the banking system

RBI to use cash reserve ratio for liquidity, policy transmission: Report

The person aware of the Reserve Bank of India's thinking declined to be identified because they are not authorised to speak to the media. The RBI did not reply to an email seeking comment

RBI to discontinue daily variable rate repo auctions from June 11

The RBI started conducting daily VRR auctions on every working day from January 16, when banks were grappling with tight liquidity conditions

Open market operations: The central bank's new communication policy

The approach to managing liquidity and communication policy is yet another manifestation of how the central bank has taken a fresh view on the issue