13-February-2026
Banking
 
India banking cash glut opens up arbitrage for lenders
12-Feb-2026

The surge in India’s banking liquidity has opened up an arbitrage opportunity for lenders, enabling them to borrow cheaply and park the money with the central bank at a higher rate. Overnight money market rates have crashed after the Reserve Bank of India flooded the banking system with cash, with government spending adding to the surplus.

News Source:- https://economictimes.indiatimes.com/industry/banking/finance/banking/india-banking-cash-glut-opens-up-arbitrage-for-lenders/articleshow/128242286.cms