India, May 22 -- The Reserve Bank of India (RBI), in its latest monthly update, reported that system liquidity remained in surplus during April and into May (up to May 19, 2025), aided by the central bank's proactive liquidity management efforts.
Despite this surplus, liquidity conditions came under some pressure in the latter half of April due to a build-up in government cash balances—driven by advance tax collections and GST-related outflows—as well as an increase in currency in circulation (CiC).
To ease these pressures, the RBI injected a total of Rs 1.68 lakh crore into the banking system between April 16 and May 19, 2025. This was carried out through one main 14-day Variable Rate Repo (VRR) auction and 21 fine-tuning VRR...