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Economics7h 48m ago

Analysts expect the Reserve Bank of India to increase short-term cash withdrawal operations in coming months, potentially requiring banks to keep a larger proportion of deposits with the RBI in August.

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India

Who
Reserve Bank of India, BofA Securities, Bandhan AMC Ltd., DBS Bank Ltd.
What
Analysts expect the Reserve Bank of India to increase short-term cash withdrawal operations in coming months, potentially requiring banks to keep a larger proportion of deposits with the RBI in August.
When
Fri, 19 Jun 2026 02:51:00 GMT · 7h 48m ago
Where
India ·
Why
Surplus banking liquidity is seen climbing to pandemic-era levels of about 8 trillion rupees ($85 billion), alongside rising inflation risks.
The Frontline Impact

How this affects you

The rally in India’s short-end bonds may fizzle out, potentially stabilizing yields on five-year notes around 6.50% as the central bank drains excess cash.

Story chain

2 events in this thread
  1. Economics7h 48m ago
    Analysts expect the Reserve Bank of India to increase short-term cash withdrawal operations and potentially raise the cash reserve ratio in coming months to drain surplus banking liquidity.
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  2. Currently Reading7h 48m ago
    Analysts expect the Reserve Bank of India to increase short-term cash withdrawal operations in coming months, potentially requiring banks to keep a larger proportion of deposits with the RBI in August.

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