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RBI's Cash Flow Showdown Ends in March: Bankers Weigh In

RBI's Cash Flow Showdown Ends in March: Bankers Weigh In

Listen up, folks! The RBI's cash flow extravaganza is set to wrap up after March, as they pump up the liquidity to tackle market stress. The call rate's dropping faster than a championship belt, but once March rolls around, funding pressures are ready to rumble! Stay tuned, because this financial showdown is about to electrify the arena!

Quick rundown

  1. RBI's liquidity support aims to ease money market stress.
  2. Overnight rates have dipped towards the policy rate floor.
  3. Liquidity injections are a temporary measure until March.
  4. Call rates have fallen below the repo rate, indicating surplus.
  5. Expect RBI to absorb surplus liquidity post-March.

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