💨 Abstract

The Reserve Bank of India (RBI) is set to discuss its liquidity management framework with lenders next week, possibly announcing changes at its April policy meeting. This follows a sharp depletion of banking system liquidity in India, primarily due to the RBI's aggressive dollar-selling intervention in the foreign exchange market. As India moves towards lower interest rates, changes to the liquidity framework could significantly impact the country's banking system and economic growth.

Courtesy: theprint.in

Summarized by Einstein Beta 🤖