RBI Absorbs ₹6.02 Lakh Crore as Liquidity Surplus Hits Record

Banks had much more money available than they needed.

The Reserve Bank of India temporarily took some of that money from banks through two auctions.

Banks placed more than ₹6 lakh crore with the central bank for three days.

They received an interest rate of 5.24 per cent in both auctions.

The banking system still had a surplus of about ₹10.32 lakh crore.

Much of the extra money came after special foreign-currency deposits brought funds into India’s banking system.

Government payments for salaries and pensions also added money.

Because there was so much money, short-term interest rates fell.

The RBI has been holding many similar auctions to keep these rates closer to its policy rate.