FPJ News Service MUMBAi

The county’s banking system liquidity has improved to a surplus of Rs 1.5 lakh crore as on April 7, 2025, the RBI said here on Wednesday. “Coupled with government spending picking up pace during the latter half of March, liquidity further improved to a surplus. The system liquidity was in deficit in January 2025 with net injection under the liquidity adjustment facility scaling a peak of Rs 3.1 lakh crore on January 23, 2025. 

“However, as a result of a slew of measures injecting liquidity of about 6.9 lakh crore rupees, the system liquidity deficit tapered during February-March 2025, further turned into surplus on March 29, 2025, and to a surplus of Rs 1.5 lakh crore as on April 7, 2025,” the apex bank said. Reflecting these developments, the weighted average call rate softened and remained near the repo rate since the last policy meeting.

The spreads of 3-month CP and 3-month CD rates over 91-day Treasury bill rate have also softened since the second half of March, suggesting improvement in liquidity conditions. “The RBI is committed to provide sufficient system liquidity. We will continue to monitor the evolving liquidity and financial market conditions and proactively take appropriate measures to ensure adequate liquidity,” Malhotra said.