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MARKETS-ECONOMIC TIMES · INDIAN ·

India short-bond rally faces risks from cash drain, analysts Say

As reported by Markets-Economic Times
BofA Securities and Bandhan AMC Ltd. expect the Reserve Bank of India to step up short-term cash withdrawal operations in coming months as surplus banking liquidity is seen climbing to pandemic-era levels of about 8 trillion rupees ($85 billion). DBS Bank Ltd. expects the central bank to deploy a stronger tool in August by requiring banks to keep a larger proportion of deposits with the RBI.
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BofA Securities and Bandhan AMC Ltd. anticipate the Reserve Bank of India increasing short-term cash withdrawal operations. This action is driven by an expected surge in banking liquidity to 8 trillion rupees, reminiscent of pandemic levels. Analysts suggest these measures pose…

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