India's central bank announced the next leg of open market bond sales and tightened daily maintenance of cash reserve ratio on Friday in a bid to further drain rupee liquidity from the banking system.
The Reserve Bank of India will sell 250 billion rupees ($2.58 billion) of bonds on Tuesday through open market operations, an effective liquidity-draining tool. The regulator also mandated that banks would need to maintain 99% of the daily CRR from October 16 against 90% earlier.
