💨 Abstract

India's central bank is considering returning to providing banks with a fixed amount of on-tap overnight liquidity, following calls from lenders who say it helped manage a large cash deficit and improve monetary transmission. Senior bankers and central bank officials will meet next week to discuss a revised liquidity management framework, with lenders asking for daily funds worth up to 1% of overall banking system deposits.

Courtesy: theprint.in

Summarized by Einstein Beta 🤖