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Tight liquidity sets stage for RBI action

Mint Kolkata

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October 27, 2025

Liquidity in India's banking system has turned negative for the first time in a month, as the Reserve Bank of India's (RBI) dollar sales to defend the rupee and higher cash withdrawals during the festive season drained funds from the market.

- Subhana Shaikh

Tight liquidity sets stage for RBI action

The central bank could step in soon to ease the crunch, likely through open market operation (OMO) bond purchases or forex buy/sell swaps, market participants told Mint.

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