The Reserve Bank of India possesses tools to manage banking liquidity from deposit inflows. Governor Sanjay Malhotra indicated a readiness to deploy various measures if needed. He noted that excess liquidity currently lowers the weighted average call rate. The central bank anticipates some liquidity withdrawal naturally over time. The MPC will reassess growth-inflation dynamics next month amid oil price risks.

India Business News: MUMBAI: Surplus liquidity in India's money market has crossed Rs 11 lakh crore, leaving Reserve Bank of India to mop up an unusually large pool of cas.

RBI Governor discusses bond sales and FX swaps to manage liquidity and align overnight rates with the repo rate.