Source: Reuters (via feed)
India’s banking system liquidity fell into a substantial deficit for the first time in 2026. This was driven by heavy tax outflows and currency market intervention. These factors drained cash balances in the system. There were no offsetting inflows from the Reserve Bank of India. As a result, cash balances were not replenished. The deficit represents a shift in liquidity conditions during the year.
BizTrendWire Insight:
India’s banking system liquidity was affected by tax payments and currency market activity not offset by RBI inflows.
India’s banking system liquidity was affected by tax payments and currency market activity not offset by RBI inflows.
