Sustained Reserve Bank of India action through bond sales, foreign exchange swaps, and rupee defence has helped more than halve the banking system's liquidity surplus, bankers said.
Surplus banking system liquidity fell to 4.92 trillion rupees ($51.36 billion) on Monday, down 55% from a record 11.16 trillion rupees about two weeks ago. India's banking system was flush with cash after lenders raised a much larger-than-expected $133 billion through the RBI's diaspora deposit scheme.
