New Delhi, Jan. 29 -- The Reserve Bank of India (RBI) has announced a set of forex and money market measures that will collectively infuse Rs.1.5 trillion over time, amid a clamour for liquidity from multiple bankers and money market participants. Mint explains the implications of the move.

Banking liquidity has been in a deficit of more than Rs.1 trillion since mid-December 2024, after being in surplus between July and November. Average liquidity deficit in the interbank market crossed Rs.3.3 trillion last week, thanks to heavy goods and services tax (GST) outflows. The liquidity deficit has been primarily because of RBI intervening heavily in the forex market to shore up the rupee over the last two years. However, the currency began de...