India's large liquidity surplus complicates monetary policy signals
India's banking system reportedly has a ₹11.6 lakh crore liquidity surplus, potentially weakening the transmission of the repo rate and complicating efforts to manage inflation.
By DoomRadar · Published on DoomRadar .
Why it matters
Excess liquidity may distort interest-rate signals and affect inflation management and financial conditions.
Related source links
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- RBI's ₹11.6 Lakh Crore Liquidity Surplus: How Excess Cash Is Undermining Repo Rate, Inflation Fight and Interest-Rate Signals ↗openthemagazine.com · Recorded source date: Sep 8, 2026, 6:47 AM UTC
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