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RBI Skips ...
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Bloomberg Quint

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Image Credit: Bloomberg Quint

RBI Skips Key Cash Tool Again, Fuels Policy Shift Buzz

  • The Reserve Bank of India has skipped its usual 14-day cash operations, fueling speculation of a possible shift in managing bank liquidity.
  • The central bank's decision to cancel the cash operations for the third straight fortnight indicates a more flexible approach in managing liquidity.
  • The RBI has been using daily and short-term cash windows instead of the 14-day cash operations.
  • The new approach has helped align borrowing costs with the policy rate, making loans cheaper for businesses and consumers.

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