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Economics6h 37m 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.
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 · 6h 37m 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%.
Story chain
2 events in this thread- Currently Reading6h 37m 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.
- Economics6h 37m 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
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