Mumbai: Indian lenders proposed using foreign exchange sell/buy swaps to gradually withdraw excess rupee liquidity from the banking system at a meeting with the central bank on Thursday, three sources familiar with the discussion told Reuters.
Banking system liquidity surged to a record 9.7 trillion rupees ($102.66 billion) after India drew $127 billion in foreign-currency deposits from non-residents under a special scheme, with the funds swapped directly with the Reserve Bank of India.
