New Delhi, April 8 -- Donald Trump's return to reciprocal tariffs has grabbed the headlines. But as attention remains fixated on trade spats, a quieter development is unfolding in India with far-reaching implications: the Reserve Bank of India's (RBI) April monetary policy meeting.

With the global outlook darkening, monetary policy is no longer a six-times-a-year affair. It's an active, continuous process. As India enters FY26, the RBI faces three urgent imperatives: ensure systemic liquidity, facilitate monetary transmission, and guard against downside risks to stability. All this while preparing the financial system for the tremors set off by the US administration.

Managing liquidity

Liquidity in the banking system turned surplus in ...