The Economic Times

India's central bank withdraws over 6 trillion rupees of bank liquidity after record spike

The Reserve Bank of India absorbed more than 6 trillion through liquidity withdrawal operations after banking system surplus hit a record 11.6 trillion. Banks parked 2.59 trillion in a 30-day auction, while 3.53 trillion was offered in an overnight auction. The RBI may deploy additional reverse repos, market stabilisation bonds and sell-buy swaps to drain excess liquidity.