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RBI is firefighting cash

Finshots Daily

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Reserve Bank of India's Approach to Managing Liquidity

This chapter explores how the Reserve Bank of India (RBI) addresses liquidity concerns and discusses the tools they use, such as repo and reverse repo rates, to control inflation. It also examines the current issues of bank loan growth, high inflation, and excess cash in banks, attributing the surplus to the withdrawal and deposit of the 2000 rupee note.

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