The Economic Times

India's bank liquidity surplus hits all-time high riding flood of dollar deposits

Indias banking system liquidity surplus has surged to a record 9.7 trillion ($102.67 billion), surpassing the previous peak seen in September 2021. The sharp increase follows Indian banks raising $127.23 billion through non-resident foreign-currency deposits under the RBIs scheme, with most funds swapped into rupees. The liquidity glut could complicate RBI management of overnight rates and liquidity.