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As banking cash overhang plunges 55% from an ₹11.16 lakh crore record, the central bank unleashes overnight reverse repo auctions, bond sales, and currency swaps to anchor short-term interest rates.
The Reserve Bank of India is stepping up its efforts to absorb excess cash from banks by scheduling a massive thirty-day variable rate reverse repo operation. Let us break down how foreign inflows pushed the systemic surplus to record highs.
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