📰 ET Markets 🟢 BULLISH 🕒 22 Oct 2026, 06:36 AM IST

Why RBI is draining excess liquidity but also injecting funds

⚡ Instant Key Takeaways (TL;DR)

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Core Development: Why RBI is draining excess liquidity but also injecting funds

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Market & Financial Impact: Reserve Bank of India has significantly reduced banking system liquidity from a peak surplus in a short time. Liquidity surged after banks received funds from overseas Indians under the FCNR(B) scheme. The central bank utilized reverse repo auctions and cash reserve ratio adjustments to absorb this surplus effectively. As overnight rates increased following these liquidity measures, RBI temporarily infused funds to manage sharp rate rises.

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Actionable Insight: 🟢 Bullish Trigger: Positive business expansion or earnings beat may attract institutional and retail buying.

Reserve Bank of India has drained banking system liquidity from a peak surplus of ₹11 lakh crore to ₹48,303 crore.

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Official Publisher Attribution: This report is aggregated from Economic Times. ZeroLive provides live aggregation, automated sentiment synthesis, and exchange disclosure monitoring for retail market participants.

Read Original Full Coverage on Economic Times ↗

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Why RBI is draining excess liquidity but also injecting funds

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