Sources Say RBI to Confer with Banks on Deposit Surge This Week

Deep News
Yesterday

People familiar with the matter have indicated that the Reserve Bank of India is set to hold a meeting with several banks on Thursday to discuss liquidity management strategies. This comes after a series of government policies designed to attract more capital inflows resulted in an unexpectedly large influx of funds.

According to these sources, the substantial rise in surplus liquidity within the banking system, driven by these inflows, has pushed overnight borrowing costs well below the policy rate set by the Reserve Bank of India. The individuals, who requested anonymity as they were not authorized to speak publicly, noted that the system's excess liquidity climbed to 9.9 trillion rupees on Wednesday, reaching its highest level since September 2021.

An official spokesperson for the Reserve Bank of India has not yet replied to emails seeking comment.

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