💨 Abstract

India's central bank is considering a return to providing banks with daily, on-tap overnight liquidity, up to 1% of overall banking system deposits, to improve monetary transmission and better manage liquidity. The change comes as a response to requests from lenders, who find it difficult to predict their liquidity needs for 14 days, especially with 24/7 operations.

Courtesy: theprint.in

Summarized by Einstein Beta 🤖