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RBI's liquidity test may set future course

Posted on September 6, 2026
By Business News Today
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RBI's liquidity test may set future course

The Reserve Bank of India is currently grappling with a notable liquidity dilemma due to a surge in FCNR(B) scheme inflows. To navigate this, a pivotal variable rate reverse repo auction is set to influence the liquidity management strategy. The central bank may also utilize measures such as dollar swaps and bond sales.