Go Unlimited with Magzter GOLD
Get unlimited access to 10,000+ magazines, newspapers and Premium stories for just
Try GOLD - Free
Tight liquidity may spur RBI move
Hindustan Times Rajasthan
|October 27, 2025
The RBI could step in soon likely via open market operation bond purchases or forex swaps
The rupee's defence around the 89-per-dollar level and a widening trade deficit led to sizable dollar sales by the RBI.
(REUTERS)
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. 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.
As of October 23, liquidity in the banking system was in a deficit of 2,645 crore. Market participants warn that if the outflows persist, core liquidity—system liquidity after accounting for government cash balances—could slip below 1% of the net demand and time liabilities (NDTL) by the March quarter. This will tighten funding conditions, push up short-term rates and strain banks’ ability to lend during the busy season.
Under its liquidity management framework, the RBI aims to maintain system liquidity, which includes government cash balances, at around 1% of NDTL.
This story is from the October 27, 2025 edition of Hindustan Times Rajasthan.
Subscribe to Magzter GOLD to access thousands of curated premium stories, and 10,000+ magazines and newspapers.
Already a subscriber? Sign In
MORE STORIES FROM Hindustan Times Rajasthan
Hindustan Times Rajasthan
SC RAPS STATES FOR FAILING TO SUBMIT ABC REPORTS
NEW DELHI: The Supreme Court on Monday came down heavily on states and Union territories (UTs) for failing to submit compliance reports from their animal husbandry departments and local bodies on the implementation of the Animal Birth Control (ABC) Rules, 2023, warning that top bureaucrats would face personal accountability for their inaction in controlling the stray dog menace while safeguarding human and animal welfare.
1 min
October 28, 2025
Hindustan Times Rajasthan
Quest for perfect electoral rolls
EC must guard against the SIR process leading to large-scale disenfranchisement
2 mins
October 28, 2025
Hindustan Times Rajasthan
Jaishankar, Rubio hold talks on Asean sidelines
External affairs minister S Jaishankar on Monday held talks with his US counterpart Marco Rubio amid efforts by the two sides to reset bilateral ties that have come under severe strain over punitive US tariffs on Indian goods.
1 min
October 28, 2025
Hindustan Times Rajasthan
EC announces phase two of SIR across 12 states, UTs
The Election Commission will conduct phase two of the special intensive revision of electoral rolls in 12 states and Union Territories, Chief Election Commissioner Gyanesh Kumar announced on Monday.
2 mins
October 28, 2025
Hindustan Times Rajasthan
CJI RECOMMENDS JUSTICE SURYA KANT AS HIS SUCCESSOR
Chief Justice of India (CJI) Bhushan R Gavai on Monday set in motion the process to appoint his successor by recommending Justice Surya Kant, the seniormost judge of the Supreme Court, to the Union government.
1 min
October 28, 2025
Hindustan Times Rajasthan
Investing in science for co-creation, co-existence
Developments in science and technology have no doubt led to a paradigm shift in human capability, leading to humanity making strides never visualised before.
3 mins
October 28, 2025
Hindustan Times Rajasthan
INDIA E-COMM EXPORTS TOP $20 BN DESPITE US TARIFFS: AMAZON
Amazon on Monday said it has helped Indian sellers surpass $20 billion in total exports, including nearly $7 billion this year, as small operators work to offset the impact of new US import tariffs that were imposed in August.
1 min
October 28, 2025
Hindustan Times Rajasthan
A favourable FTA for giving up Russian oil
India must make a virtue out of necessity by proposing that it will comply with US sanctions in exchange for the latter addressing its key strategic interests
4 mins
October 28, 2025
Hindustan Times Rajasthan
SC allows govt to review Vodafone Idea AGR dues
In a major relief for Vodafone Idea (Vi), the Supreme Court on Monday allowed the Union government to review and reconsider the additional demand in adjusted gross revenue (AGR) dues against the financially distressed telecom operator, marking what could be a fresh breath of life for the beleaguered company struggling to stay afloat in India’s hyper-competitive telecom sector.
2 mins
October 28, 2025
Hindustan Times Rajasthan
How international law sees the Taliban regime
The recent visit of Afghanistan's foreign minister, Amir Khan Muttaqi, to India has triggered a debate on whether India should formally recognise Kabul’s Taliban government, once considered synonymous with international terrorism, that came to power in 2021 through a horrific takeover.
3 mins
October 28, 2025
Listen
Translate
Change font size