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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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  1. Currently Reading8h 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.
  2. Economics8h 29m 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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