27-February-2026
Markets and Finance
 
RBI's additional liquidity support to wind down after March, bankers say
26-Feb-2026

The Indian central bank's additional liquidity support to lenders, which has pushed overnight rates towards the floor of the policy rate corridor in a bid to ease money market stress and improve transmission, is unlikely to extend beyond March, according to bankers. Market participants say the liquidity push reflects an interim calibration, with the central bank aiming to ease short-term rates. India's banking system liquidity surplus has averaged around 1.1% of deposits this month, inching past the 1% threshold that the Reserve Bank of India indicated in December.

News Source:- https://economictimes.indiatimes.com/news/economy/finance/rbis-additional-liquidity-support-to-wind-down-after-march-bankers-say/articleshow/128804820.cms