RBI to meet banks and dealers amid liquidity strain

RBI calls meeting with banks amid liquidity squeeze after aborted bond auction, signalling potential policy action.

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RBI to meet banks and dealers amid liquidity strain

RBI to meet banks and dealers amid liquidity strain
The Reserve Bank of India is set to convene with select banks and primary dealers on Tuesday in response to tightening liquidity conditions within India’s banking system. The move follows the cancellation of a ₹11,000 crore government bond auction, which pushed yields higher and raised concerns about state borrowing levels. Market participants expect the central bank to explore adjustments in the government securities supply calendar and recommend that states moderate their borrowing. The meeting signals RBI’s proactive stance in stabilising liquidity and preserving bond-market stability.
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