The Reserve Bank of India (RBI) reported that system liquidity remained in surplus during August, September, and early October, ensuring stable financial market operations. In the October 2024 Monetary Policy Statement, Governor Shaktikanta Das reiterated the central bank’s commitment to a nimble and flexible approach in liquidity management.
The surplus liquidity environment provides banks with the ability to lend more freely, supporting economic activity. The RBI also noted that it would continue to monitor conditions closely and intervene as needed to maintain liquidity stability in the financial system.
Disclaimer: This article is based on the latest disclosures from the RBI’s monetary policy announcement.
