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RBI May Change Its Liquidity Management Approach: Report

The Business Guardian

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May 21, 2025

India's banking system remained in a liquidity surplus during the week ending May 16, 2025, with average surplus funds amounting to Rs 2.04 lakh crore, according to a recent report by Union Bank of India.

- TDG NETWORK

RBI May Change Its Liquidity Management Approach: Report

Despite tighter liquidity conditions in recent months, the weighted average call rate (WACR) stood at 5.69 per cent, which is lower than the current repo rate. This indicates the presence of excess funds in the system.

The report said, "The banking system remained in surplus for most of the week, averaging Rs. 2.04 lakh crore".

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