RBI to slow cash boost after $100 billion injection; surplus transfer eyed, say economists

The Reserve Bank of India is likely to curtail liquidity infusion after injecting Rs 8.57 lakh crore into the banking system since December, anticipating a substantial surplus transfer to the government. Economists predict the surplus transfer could range from Rs 2.5 to 4 lakh crore. Bond market participants foresee a pause in the recent price rally, with yields expected to stabilise.