India’s banks saw a big rise in extra funds:
The liquidity surplus in India’s banking system jumped to over ₹4 trillion, the highest in more than two years. This was mainly due to increased government spending and a large surplus transfer by the Reserve Bank of India (RBI). The RBI also received a strong response to its seven-day Variable Rate Reverse Repo (VRRR) auction, showing banks’ interest in short-term operations. This news is important as it affects lending, borrowing, and interest rates in the country.
