RBI to proactively ensure sufficient liquidity in the banking system
Mumbai, Aug. 5 -- Sanjay Malhotra, Governor of the Reserve Bank of India (RBI) has stated today that system liquidity, as measured by the net position under the liquidity adjustment facility or LAF, stood at an average daily surplus of Rs 1.0 lakh crore since the last MPC meeting in June 2026.20 Going ahead, the usual return of currency during the monsoon season, drawdown of government cash balances and RBI's special measures to attract capital inflows are expected to aid banking system liquidity in the near-term. He noted that over last few weeks, the weighted average call rate traded within the policy corridor averaging 5.31 per cent. Short-term money market rates, especially rates of commercial papers and certificates of deposit, moder...
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