RBI likely to slow liquidity infusion

NOW, IN SURPLUS

- DHARAMRAJ DHUTIA

THE RESERVE BANK of India (RBI) is expected to slow its liquidity infusion after pumping ₹8.57 lakh crore ($100.06 billion) into the banking system since December, with a large surplus transfer to the government expected soon, several investors said.

The central bank concluded its final scheduled open market bond purchase on Monday, and has not yet announced any more purchases. The RBI has been infusing liquidity since the last six months.