#Liquidity Management

RBI Hikes Daily CRR to 99%: Why ₹3.88 Lakh Cr Cash Is Trapped

Starting October 16, 2026, the RBI forces banks to hold 99% of cash reserves daily. Here is why the central bank is trapping ₹3.88 lakh crore in liquidity, hiking overnight call rates, and squeezing day-to-day banking treasury profit margins.

RBI Absorbs ₹2.23 Lakh Crore via VRRR, Deploys ₹1 Lakh Crore OMO Sales

The Reserve Bank of India deployed a coordinated monetary strategy to tackle a ₹7.38 lakh crore banking liquidity overhang. The central bank absorbed ₹2.23 lakh crore via a 14-day VRRR auction at 5.24% while initiating ₹1 lakh crore in OMO bond

RBI Foreign Exchange Intervention Likely as Rupee Nears ₹95.80

As Brent crude oil nears $110 a barrel and US Treasury yields approach the critical 5% mark, state-run banks were seen selling dollars in a likely RBI foreign exchange intervention aimed at curbing Indian rupee volatility and market risks.