Banks showed little interest in the Reserve Bank of India's 30-day reverse repo operation. This occurred even as banking system liquidity reached a near five-year high. Treasury heads avoided locking funds at the current interest rate. Many expected a future rate hike, seeking better returns. The Reserve Bank will conduct an overnight auction to manage liquidity.
Banks showed little interest in the Reserve Bank of India's 30-day reverse repo operation. This occurred even as banking system liquidity reached a near five-year high. Treasury heads avoided locking funds at the current interest rate. Many expected a future rate hike, seeking better returns. The Reserve Bank will conduct an overnight auction to manage liquidity.
<iframe src="https://hindustansphere.com/embed/cluster/c5c521d5e0a30541d2d733d924da03dddaee8aa9" width="100%" height="320" style="border:0;max-width:680px" loading="lazy" title="RBI's 30-day VRRR operation sees muted response amid high banking liquidity surplus"></iframe>
