Reserve Bank of India halves excess cash to ₹4.92L/cr
Business
The Reserve Bank of India (RBI) has cut the extra cash floating in banks by more than half this month, bringing it down from ₹11.16 lakh crore to ₹4.92 lakh crore.
This move comes after a huge $133 billion inflow from a diaspora deposit scheme, which had sparked concerns about rising prices and a weakening rupee.
RBI sells bonds, banks park ₹3.4L/cr
To tighten things up, the RBI sold ₹750 billion in bonds (with another ₹250 billion sale planned for Monday), and banks have parked ₹3.4 lakh crore with the central bank through reverse repos.
The RBI is also doing daily foreign exchange swaps worth about $1 billion, targeting swaps maturing in January 2027, all to help set the stage for possible interest rate hikes expected later this year.