According to Sina Finance, people familiar with the matter said India's central bank will meet with some banks on Thursday to discuss liquidity management. The meeting comes after several policies aimed at boosting capital inflows led to stronger-than-expected fund inflows.
People familiar with the matter said the inflows pushed excess liquidity in the banking system sharply higher, leaving overnight borrowing costs well below the Reserve Bank of India's policy rate. According to Sina Finance, excess liquidity in the banking system rose to 9.9 trillion rupees on Wednesday, the highest level since September 2021.