Mumbai, Sept. 28 -- Reserve Bank of India stated in its latest monthly bulletin that system liquidity remained in surplus in August and surged further in September (till 21st), amidst strong inflows under the FCNR(B) swap facility. System liquidity, however, moderated amidst tax related outflows and RBI's durable liquidity measures during the second half of September. The reliance of banks on the marginal standing facility (MSF) commensurately declined, and the daily deployment under the standing deposit facility (SDF) rose. RBI conducted term as well as fine-tuning variable rate reverse repo (VRRR) auctions to mop up excess liquidity.44 On review of current and evolving liquidity conditions, the RBI also announced open market operation (...