Mumbai, Sept. 30 -- The report of the Internal Working Group (IWG) to review the Liquidity Management Framework was placed on the RBI website on August 6, 2025, and comments on the same were invited from stakeholders and members of the public by August 29, 2025. The Reserve Bank has now finalized the liquidity management framework as under:

The overnight weighted average call rate (WACR) will continue to be the operating target of the monetary policy. The Reserve Bank will, however, continue to keep track of rates in other overnight money market segments to ensure orderly evolution of money market rates and smoothen transmission.

The existing symmetric corridor system is retained, with policy repo rate at the middle of the corridor and ...