Indian lenders suggested forex sell/buy swaps to reduce excess rupee liquidity. This proposal came after a meeting with the Reserve Bank of India. Banking system liquidity reached a record high following foreign currency deposits. The central bank has several tools to manage liquidity effectively. Lenders urged the RBI to avoid impacting bank margins with other measures.

By the close of August, liquidity within the banking sector surged to close to Rs 5 lakh crore, fueled by government spending and inflow of foreign currency deposits. The Reserve…

India's banking system attracted over $136 billion through a special Reserve Bank of India swap facility. Foreign currency non-resident deposits accounted for the largest portion…

Indias banking system liquidity surplus has surged to a record ₹9.7 trillion ($102.67 billion), surpassing the previous peak seen in September 2021. The sharp increase follows…

The RBIs special dollar deposit scheme attracted a massive $127.23 billion, pushing Indias banking system liquidity surplus to a record ₹9.70 trillion. The central bank may deploy…