Page 2 - Liquidity

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

RBI may cut rates by up to 125 bps in FY26, says SBI Research report

SBI Research expects a 125 bps rate cut in FY26 as inflation falls to multi-year lows, with liquidity measures like OMOs and pressure on deposit rates likely to follow

Govt bond yields inch up following RBI's revised liquidity norms

The RBI has mandated a 2.5 per cent additional run-off factor for retail deposits linked to internet and mobile banking (IMB) facilities for commercial banks

RBI mandates 2.5% additional run-off factor on digital retail deposits

Final norms will come into effect from April 1, 2026

RBI's 43-day VRR auction sees tepid demand, gets bids worth ₹25,431 cr

Additionally, the central bank also purchased ₹40,000 crore worth of government securities via the Open Market Operations (OMO) auction

Festive lending slowed in Q3 amid strict norms, tight liquidity: Report

Personal loan originations saw a steep decline in Q1 FY25 after consistent growth up to Q3 FY24

Average call, policy repo rate spread narrows as liquidity improves

The WACR moved in tandem with policy repo rate. Additionally, the overnight rates in collateralised segment - that is, triparty repo (TREPS) and market repo - broadly remained aligned with WACR

RBI evaluating liquidity framework to determine overnight anchor rate

Aim to have surplus liquidity of around 1% of NDTL

We will provide sufficient liquidity for monetary policy transmission: RBI

The RBI has guided that liquidity should be 1-1.5 percent of NDTL

Banks park record Rs 4.13 trillion with RBI in standing deposit facility

This marked the highest amount banks have parked in the SDF since its introduction in April 2022

Poonam Gupta: Deputy RBI governor's focus could be liquidity conundrum

Her appointment comes less than a week before a meeting of the monetary policy committee