New Delhi, Sept. 4 -- India's central bank will lock up excess banking cash for longer, stepping up efforts to manage a record liquidity glut fueled by its drive to attract dollars from overseas Indians.

The Reserve Bank of India will hold a 7 trillion rupee ($74.1 billion), 30-day variable-rate reverse repo auction on Monday, it said in a statement.

The longer tenor marks a shift from recent operations of up to 15 days and will allow the RBI to keep excess cash out of the banking system for an extended period. The tool is less forceful than some alternatives because banks choose how much money they want to park with the central bank.

India's banking system is awash with a record 10.5 trillion rupees of excess cash, according to a Bloo...