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  • Surplus liquidity helps better transmission of rate cuts in bond, credit market, says RBI governor

    Surplus liquidity helps better transmission of rate cuts in bond, credit market, says RBI governor

    Between February and June 2025, the weighted average lending rate of scheduled commercial banks fell by 71 basis points for fresh rupee loans, of which 55 bps was directly due to the repo rate cut

  • Can a flood of liquidity trigger another round of high inflation?

    Can a flood of liquidity trigger another round of high inflation?

    In theory, this could fuel demand-pull inflation, as more money chases goods and services. The RBI, however, is playing a cautious game.

  • RBI to halt daily VRR auctions from June 11 as system liquidity reaches surplus of Rs 2.75 trillion

    RBI to halt daily VRR auctions from June 11 as system liquidity reaches surplus of Rs 2.75 trillion

    VRR auctions fell to Rs 97,861 crore in May, compared to Rs 13,48,316 crore in January, indicating surplus liquidity

  • A rate cut is round the corner, it's a matter of how much

    A rate cut is round the corner, it's a matter of how much

    The RBI is aware that a rate cut amid a liquidity deficit is akin to a 'wasted bullet' and is thus rightly setting the stage for (potential) effective transmission by infusing liquidity into the system in the run up to the April 9 policy

  • State-owned banks lead in issuing CDs in FY25 to mop up deposits

    State-owned banks lead in issuing CDs in FY25 to mop up deposits

    Among the state-owned banks account for 62 percent of the CDs and Punjab National Bank raised Rs 2.16 lakh crore, the most by a lender, in FY25

  • Banking Central |How far could the RBI go on the liquidity mission?

    Banking Central |How far could the RBI go on the liquidity mission?

    A fresh surge in liquidity could stoke inflationary pressures, undoing the RBI’s hard-won price stability

  • RBI declines investors' bids for 91-day, 182-day T-bills, a rare step amid tight liquidity

    RBI declines investors' bids for 91-day, 182-day T-bills, a rare step amid tight liquidity

    This has happened after nine years for the 182-day T-Bill, and after 23 months for the 91-day T-Bill, as per RBI data. Last time, when the central bank did not accepted bids on 182-day and 91-day T-Bills was on February 24, 2016, and on March 29, 2023, respectively.

  • Under Malhotra, RBI has pumped in Rs 43 lakh crore in banking system to meet liquidity needs 

    Under Malhotra, RBI has pumped in Rs 43 lakh crore in banking system to meet liquidity needs 

    Liquidity deficit swung from Rs 30,000 crore to Rs 3 lakh crore between December 16 and February 14 due to tax outflows, RBI intervention in the forex market and limited spending by government, the central bank's data shows

  • Amid high liquidity deficit, RBI may continue heavy liquidity infusion

    Amid high liquidity deficit, RBI may continue heavy liquidity infusion

    Between February 10 and February 14, the central bank has infused Rs 9.81 lakh crore through daily VRR auctions

  • RBI to inject as much liquidity as required by banks

    RBI to inject as much liquidity as required by banks

    Banking system liquidity has been under stress in the last few weeks due to various reasons such as tax outflows, heavy intervention by RBI in forex market to sell dollars, and less government spending.

  • Chart of the Day: Interest rates and the two sides of liquidity

    Chart of the Day: Interest rates and the two sides of liquidity

    Deposit rates have risen consistently, but tight liquidity hasn’t forced banks to hike loan rates

  • Chart of the Day: RBI’s forex position shows why a CRR cut was coming in December

    Chart of the Day: RBI’s forex position shows why a CRR cut was coming in December

    The RBI’s forex operations are the biggest drag on liquidity

  • Personal Finance: Collective demand can feed the bond liquidity window

    Personal Finance: Collective demand can feed the bond liquidity window

    There are managed funds, which address investors seeking higher return from bonds, through actively participating in the interest rate and credit cycle opportunities

  • Primary market action draining liquidity from small and midcap spaces: JPMorgan's Rajiv Batra

    Primary market action draining liquidity from small and midcap spaces: JPMorgan's Rajiv Batra

    Rajiv Batra said India has rallied nearly 660% in last two decades, while US has gained only 440%, and this outperformance has come largely due to India's earnings potential.

  • Want to withdraw from national pension system (NPS) funds before retirement? Here’s how you can

    Want to withdraw from national pension system (NPS) funds before retirement? Here’s how you can

    Tapping into your retirement may not be ideal but sometimes becomes inevitable. Here are simple steps you need to keep in mind when you plan to withdraw from NPS. Can you withdraw the full amount? Is the amount taxable? Watch this video to find out

  • RBI to conduct Rs 1.25 lakh crore 14-day variable rate repo auction on May 17

    RBI to conduct Rs 1.25 lakh crore 14-day variable rate repo auction on May 17

    Currently, liquidity in the banking system is estimated to be in deficit of around Rs 1.20 lakh crore, as per RBI’s Money Market Operations as on May 15.

  • RBI may conduct more VRRR auctions amid surplus liquidity to align overnight rates with repo rate: Experts

    RBI may conduct more VRRR auctions amid surplus liquidity to align overnight rates with repo rate: Experts

    Currently, the overnight weighted average call money rate is trading at 6.4899 percent. Liquidity in the banking system stood at a Rs 1.58 lakh crore surplus on April 3.

  • FPIs to lead the next leg of the rally?

    FPIs to lead the next leg of the rally?

    At the current pace, DIIs could surpass FPI holdings in the next few quarters, with the gap between the two at an all-time low

  • Short Call | Small-caps may not defy gravity for long; attention on Aarti, Petronet on slippery track, Biocon in bother

    Short Call | Small-caps may not defy gravity for long; attention on Aarti, Petronet on slippery track, Biocon in bother

    The euphoria in mid, small and micro-cap shares continues unabated

  • With neutral policy tone & liquidity management, rate cut unlikely any time soon

    With neutral policy tone & liquidity management, rate cut unlikely any time soon

    The comfort in the policy tone was no surprise given the relatively tighter system liquidity (despite recent easing), and steadily easing core inflation despite stronger growth.

  • RBI may maintain tight liquidity stance to manage inflation, say experts

    RBI may maintain tight liquidity stance to manage inflation, say experts

    The RBI, which will release its next monetary policy on February 8, is expected to continue with finetuning operations

  • MC Explains | Banking liquidity deficit hits 14-year high of Rs 3.5 lakh crore, Here’s how the RBI is managing the situation

    MC Explains | Banking liquidity deficit hits 14-year high of Rs 3.5 lakh crore, Here’s how the RBI is managing the situation

    The central bank, which has been intervening with multiple instruments to manage the liquidity situation, infused Rs 2.5 lakh crore via a variable repo rate auction today.

  • India's state-run banks to lower bond purchases as liquidity tightens, treasury officials say

    India's state-run banks to lower bond purchases as liquidity tightens, treasury officials say

    Bond purchases would be incremental and linked to a rise in yields, say at every 3-4 basis points, the treasury head at the state-run bank said.

  • RBI is on active liquidity management mode

    RBI is on active liquidity management mode

    Tight liquidity conditions will enable better transmission of past policy rate hikes of 250 bps, which remains incomplete, in the RBI’s assessment

  • RBI to consider OMO sales to manage liquidity, say Governor Das

    RBI to consider OMO sales to manage liquidity, say Governor Das

    Currently, the liquidity in the banking system is estimated to be in deficit of around Rs 34,061.33 crore.

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