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Economy News

The Economic Times

Economy / The Economic Times

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RBI's additional liquidity support to wind down after March, bankers say

The RBIs recent liquidity infusion, which has pushed overnight rates below the repo rate to ease funding stress, is seen by bankers as a temporary, tactical move rather than a policy shift. With surplus liquidity rising above comfort levels and short-term rates cooling, the central bank is expected to maintain this stance only until March before likely absorbing excess cash and restoring its usual liquidity framework.

26 Feb 2026 12:14 pm