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Economics8h 29m 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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India
Who
Reserve Bank of India (RBI), BofA Securities, Bandhan AMC Ltd., DBS Bank Ltd.
What
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.
When
Fri, 19 Jun 2026 02:51:00 GMT · 8h 29m ago
Where
India ·
Why
Surplus banking liquidity is seen climbing to pandemic-era levels of about 8 trillion rupees ($85 billion), coupled with rising inflation risks.
The Frontline Impact
How this affects you
The blazing rally in India’s short-end bonds, driven by foreign capital, may fizzle out, with yields on five-year notes expected to stabilize around 6.50%.
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2 events in this thread- Currently Reading8h 29m agoAnalysts 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.
- Economics8h 29m agoAnalysts 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.Open article