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08Sep 2026

RBI Tackles Surging Liquidity Amid Inflation Risks

RBI CONFRONTS SURGING LIQUIDITY AMID INFLATIONARY PRESSURES WHY IN THE NEWS? Banking-system liquidity has surged to around ₹10.3 lakh crore, its highest level in four years, creating a monetary-policy challenge for the Reserve Bank of India. Large foreign-exchange inflows, especially through the forex swap facility, have released substantial rupee liquidity into the banking system. LIQUIDITY …

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