In his bi-monthly monetary policy statement in April 2025, RBI GOUVERNEUR SANJAY MALHOTRA noted that the liquidity of the system in January 2025 was in a net injection with net injection under the liquidity adaptation facility (cowardly) on January 23 on January 23
The liquidity of the banking system, which has been shrinking since 16 September because of the leading tax and GST outflows, has been in a shortage since March 2025 after having remained a surplus one. The shortage of Liqudity in the banking system was £ 31,987 crore on 22 September per RBI data. Surplus liquidity had shrunk to just £ 7,072 crore on September 21, 2025.
In order to relieve the liquidity deficit, the RBI has decided to carry out an overnight variable tariefrepo auction that collects £ 1.50 Lakh Crore on Wednesday. In his bi-monthly monetary policy statement in April 2025, RBI governor Sanjay Malhotra noted that the liquidity of the system in January 2025 was in the shortage with net injection under the liquidity adjustment facility (cowardly) that scaled a peak of £ 3,1 lakhhah crore on January 23.
As a result of a whole series of measures that inject the liquidity of approximately £ 6.9 Lakh Crore, the System System was reduced in February March 2025 and was further changed to surplus on 29 March.
“The reserve bank is committed to offer sufficient system liquidity. We will continue to follow the developing liquidity and financial market conditions and take proactively appropriate measures to guarantee adequate liquidity,” Malhotra said.
According to experts from the Treasury Market, there may be some pressure on liquidity in the coming days, because the payouts of loans tend to tackle at the end of the quarter.
However, the system is expected to be back to a comfortable surplus of £ 1 Lakh Crore Plus in the first week of October, because salaries will be addressed on 30 September to the accounts of government employees and the government spending will be tackled.
In addition, the second tranche of the spread Cash Reserve Ratio (CRR) section, which was announced by the RBI in June 2025, will come into effect on 4 October, increasing the liquidity of the banking system.
In order to further offer sustainable liquidity, the RBI announced in June 2025 that it will reduce the CRR with 100 basic points (BPS) to 3.0 percent of banks of banks in a spread manner in the course of the year.
This reduction is carried out in four equal tranches of 25 BPS each with effect from the fourteen days from 6 September, 4, November 1 and November 29, 2025. The CRR will release the primary liquidity of approximately £ 2.5 Lakh Crore to the banking system in December 2025.
Surplus -Liquidity is essential to guarantee a smooth transfer of the 100 basic point repair rate that the RBI has reduced since February 2025 in deposit and credit rates.
Published on September 23, 2025
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