>[!example]- Table of Contents: Money Market Operations - Daily Data >- [[#Money Markets|Money Markets]] > - [[#A. Overnight Segment]] > - [[#B. Term Segment]] > - [[#RBI OPERATIONS]] > - [[#C. Liquidity Adjustment facility]] > - [[#3. Marginal Standing facility]] > - [[#4. Standing Deposit facility]] > - [[#5. On Tap Targeted Long Term Repo Operations]] > - [[#LTROs]] > - [[#Targeted Long-Term Repo Operations (TLTRO)]] > - [[#6. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)]] > - [[#D. Standing Liquidity Facility]] > - [[#E & F. NET Liquidity]] > - [[#RESERVE POSITION.]] > - [[#G. Cash Reserve Position of Scheduled Commercial Banks]] > - [[#H. Government of India Surplus Cash balance Reckoned for Auction]] > - [[#I. Net durable liquidity [surplus (+)/deficit (-)] as on]] 1. Here we list liquidity facilities (tools) by RBI (to manage short-term/transient and durable liquidity with banks) 1. Short-term/transient liquidity: 1. ==lending and borrowing with the banks through repo/reverse repos under the Liquidity Adjustment Facility (LAF),== 2. ~~[SLF](Money%20Market%20Operations%20(MMO).md#D.%20Standing%20Liquidity%20Facility%20(SLF)) for Standalone Primary Dealers~~ - SLF is a sector-specific support tool, not used to directly target banking system liquidity. 1. SLF by SPDs increases [reserve money](Reserve%20Money.md) as "RBI credit to the Commercial Sector" increases along with "Other Deposits with RBI". It then moves to the banks, and "Other Deposits with RBI" falls and "Excess Reserve of Banks/Bankers' Deposits with RBI" increases, and thus it adds liquidity to the banking system, and becomes a "liquidity management" driver of system liquidity 2. Durable Liquidity: 1. Long-term repo [(LTR)](Long-Term%20Repo%20Operations%20(LTROs).md) like On-Tap LTROs, SLTRO, TLTROs, and long-term variable rate reverse repo (LTRR) 2. RBI's operations in government securities: 1. [[Open Market Operations (OMOs)|OMOs]] in [[G-Secs-Primary Market|dated central and state government securities]], in the form of outright purchases/sales, buybacks and redemptions. 2. [[Market Stabilisation Scheme (MSS), 2004|MSS]] in dated G-Secs, T-Bills, CMBs (after a period of capital inflows) _(not used often)_ 3. ~~[Cash Management Bills (CMBs)](G-Secs-Primary%20Market.md#^f52884)~~ - when issued for liquidity absorption, for example in [[Measures to stabilise the exchange market#^2013|August of 2013]] *(not used presently)* 3. [[Forex Swaps#USD/INR Buy/Sell Swap Auction|Forex Swaps]] 2. RBI releases data on the [money market operations](https://www.rbi.org.in/scripts/SearchResults.aspx?search=money+market+operations) daily. - It is released at 9 am on the next working day. - The first section of the report is referred as **'Money Markets'**. - The second part is referred as **'RBI Operations'** and has details of the lending and borrowing between RBI and the banks under LAF along with SDF, MSF and other operations. ## Money Markets 1. Money market is a market for borrowing or lending funds for short-term, that is up-to 1 year. It consists of various instruments, of which, ^b9e46c 1. **[[Call, Notice and Term Money|Money Market - Call, Notice and Term Money]]** are the unsecured ones. They are borrowing or lending of funds for 1 day, between 2 and 14 days, and from 15 days to up to 1 year respectively without any collateral. 2. For these tenors, these transactions can also be secured ones. 1. If they are secured by collateral like G-secs, they are called market repos or [[Repos and Tri-Party Repo|tri-party repos]], or 2. If the collateral is corporate bonds, they are called repos in corporate bonds. 3. The 'Money Markets' section in the report is divided by tenors. The transactions for up to 1 day are in the "overnight" and the others are in "Term" segment of the daily report respectively. 4. It helps borrowers meet urgent fund requirements and allows lenders to earn some extra income on the surplus cash they have for a short term. Here is a summarized view of the 'Money Markets' section of the daily MMO report. | By Tenor | Tenor | Security | Collateral | | ------------------------------------------------- | -------------------------------- | --------- | --------------- | | **A. Overnight Segment (Next Day)** | | | | | I. Call Money | 1-day | Unsecured | No | | II. Triparty Repo | 1-day | Secured | G-Secs | | III. Market Repo | 1-day | Secured | G-Secs | | IV. Repo in Corporate Bond | 1-day | Secured | Corporate bonds | | **B. Term Segment (More than 1 day but <1 year)** | | | | | I. Notice Money** | 2-14 days | Unsecured | No | | II. Term Money@@ | 15 days-1 year | Unsecured | No | | III. Triparty Repo | Both: 2-14 days + 15 days-1 year | Secured | G-Secs | | IV. Market Repo | Both: 2-14 days + 15 days-1 year | Secured | G-Secs | | V. Repo in Corporate Bond | Both: 2-14 days + 15 days-1 year | Secured | Corporate bonds | ^b8fe00 ### A. Overnight Segment **This segment deals with transactions for up to 1 day.** 1. [[Call, Notice and Term Money|Call Money]] \- The funds are borrowed and lent without any collateral. Along with the range of call money rate, the data shows total volume and the weighted average rate. 2. [[Repos and Tri-Party Repo#Market Repo|Market Repo]] - They are standard repos for 1 day, viz. involving 2 parties, and the collateral is government securities. 3. [[Repos and Tri-Party Repo#Tri-party repos on G-secs|Triparty Repo]] - These are triparty repos that have central and state government securities as collateral. 4. Repo in Corporate Bond - It included [[Repos and Tri-Party Repo#Repos in Corporate bonds|repos]] and [[Repos and Tri-Party Repo#Tri-party repos on corporate bonds|tri-party repos]], with collateral as corporate securities. ### B. Term Segment This segment deals with transactions in the above categories but for a period of more than 1 day and less than a year. 1. [[Call, Notice and Term Money#Notice and Term Money|Notice Money]] \- The funds are borrowed and lent for minimum of 2 days and a maximum of 14 days, without collateral. 2. Term Money \- In term money market, funds are transacted for a minimum period of 15 days to one year without any collateral 3. Tri-Party Repo, 4. Market Repo and 5. Repo in Corporate Bond - Here transactions are like above but for tenor from 2 days to 1 year. The second part consists of RBI OPERATIONS, which are as follows: ## RBI OPERATIONS ### C. Liquidity Adjustment facility The LAF operations are discussed in this [note](Liquidity%20Adjustment%20Facility%20(LAF).md#**2025**). ==The word LAF usually includes repos, MSF and SDF (corridors) of LAF. In this report, repos are under LAF, whereas MSF and SDF are listed separately.== #### 3. Marginal Standing facility The MSF is detailed [[Marginal Standing Facility (MSF), 2011|here]]. #### 4. Standing Deposit facility The SDF is detailed [[Standing Deposit Facility (SDF), 2018|here]]. #### 5. On Tap Targeted Long Term Repo Operations 1. After TLTRO 2.0, On [Oct-9, 2020](https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=50480), RBI announced an on-tap LTRO, with a tenors of 3 years, for a total amount of up to ₹1,00,000 crore at a floating rate linked to the policy repo rate, to be deployed in these 5 [sectors](https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=50547). 2. On Dec-11, 2020, it was [extended](https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=50790) to include more 26 sectors. On Feb-5-2021, it was [extended](https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=51083) to include NBFCs. 3. It was available only up to March 31, 2021. But on April-7-2021, it was extended till [30-September-2021](https://www.rbi.org.in/commonman/English/Scripts/PressReleases.aspx?Id=3290#:~:text=As%20announced%20in%20the%20Statement,liquidity%20measures%20on%20revival%20of), and on Aug-13-2021, the deadline was extended for 3 months, i.e. up to 31-December-2021. 4. The ==[[Long-Term Repo Operations (LTROs)|note on long-term repos]]== has more details on LTRO, TLTRO 1.0 & TLTRO 2.0, On-Tap TLTRO, and special TLTRO. #### 6. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs) 1. On 7-May-21, RBI announced special [three-year long-term repo]( https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=51546) operations (SLTRO) of ₹10,000 crore at repo rate for the small finance banks (SFBs). 2. The transactions under LTRO/TLTRO/ TLTRO 2.0 are not present in the outstanding operations in the MMO, as on Nov-2024, as they have been repaid by the borrowing banks. ### D. Standing Liquidity Facility (SLF) 1. It denotes the on-tap (standing) liquidity assistance provided by the RBI, at the discretion of the eligible entity, to: 1. standalone [[Primary Dealers (PDs)|Primary Dealers (PDs)]] (SPDs) against the collateral of G-Secs, 1. RBI provides [collateralised liquidity support](https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=10476#:~:text=4%20Liquidity%20Support%20from%20RBI) at the prevailing repo rate to standalone primary dealers (SPDs) against the collateral of eligible G-Sec including SDLs (that is against the security of holdings in Subsidiary General Ledger (SGL) Accounts), in addition to access to RBI's LAF (only overnight operations but all tenors since [March, 2025](RBI_Press%20Release_20250326_Participation%20of%20Standalone%20Primary%20Dealers%20in%20Variable%20Rate%20Repo%20operations.pdf), except MSF). 2. Rate & Tenor - It is provided at the policy repo rate, repayable within a period of 90 days. 3. ==So SPDs have access to central bank liquidity through SLF and LAF (all tenors, except MSF).== 2. *(DISCONTINUED)* - and schedule banks (excluding RRBs) against the [[Exports & The RBI#^1d19fe|export credit eligible for refinance]] (from 1967 to [February 6, 2015](https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=9539)). 2. Most of the sector-specific refinance facilities, e.g., food credit refinance, 182-day treasury bill refinance, collateralized Liquidity Facility (CLF) and ACLF, loans/advances out of the NIC(LTO) Fund to SIDBI, NABARD's General Line of Credit (GLC) with RBI, National Housing Credit (Long-Term Operations) Fund (all these 3 funds were discontinued in 1992-93) were the traditional standing sources of RBI liquidity and were phased out by October 5, 2002. 3. ==Liquidity injected under SLF adds to system liquidity, as it represents funds lent by RBI, and is not a borrowing undertaken by banks to meet reserve requirements such as CRR.== 4. Directed credits are like those for exports, SSI, agriculture, priority sector lending (PSL), prescribing targets for preferred sectors, etc. are selective credit/developmental policy tool, not a conventional monetary policy instrument. 5. Timings: 1. The Standing Liquidity Facility (SLF) provided to standalone primary dealers (SPDs) is available from 9:00 AM till 2:00 PM. 2. Export Credit Refinance - It was available at fixed repo rate between 10 AM and 5 PM from Monday to Friday and between 10 AM and 1 PM on Saturday, just before being discontinued on [February 6, 2015](https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=9539). 6. Data release - It is the section "Reserve Bank of India/[RBI's Standing Facilities"](https://rbi.org.in/Scripts/BS_ViewBulletin.aspx?Id=23654) of RBI's Bulletin report which is released monthly by the Department of Economic and Policy Research, Reserve Bank of India, under the direction of the Editorial Committee. 7. Related Notes: 1. [[Bank Rate]] 2. [[Primary Dealers (PDs)]] ### Results of the LAF auctions: 1. **Timings:** The results of the auction are announced by 12.00 noon. The settlement of the first leg of all repos/ reverse repos happens on the same day within an hour of the announcement of auction result. 2. For MSF/SDF, the settlement happens real time. 3. *Reversal of repos/reverse repos as also the standing facilities (SDF and MSF) is carried out at the beginning of the day of the second leg, between 5 am to 7 am.* 4. ==Related - [Report](https://rbi.org.in/scripts/PublicationReportDetails.aspx?ID=1292#F2) of the Working Group on Comprehensive Review of Trading and Settlement Timings of Markets Regulated by the Reserve Bank.== ## E & F. NET Liquidity Injected ^85c303 1. Net Liquidity injected (net borrowed reserves) into the banking system (and commercial sector, that is SPDs) under LAF and other operations is thus: ==\= the total liquidity injected/lent $-$ total liquidity absorbed/borrowed. So this gives "Dependency on RBI" for borrowed reserves== 1. Total liquidity injected/lent: 1. LAF (through variable rate Repos, standing facility-MSF, but not LTRO/T-LTROs, that is all liquidity borrowed for up to 14 days) 1. Variable rate repo (14-day is called Main Operation) 2. Variable rate repo (overnight to up to 13 days is called Fine Tuning Operation) and 3. standing facility-MSF 2. Standing Liquidity Facility (SLF) to Standalone PDs (SPDs), 3. All types of long-term repo (LTR) like ON-Tap and Special LTRO, 2. Total liquidity absorbed/borrowed: 1. LAF (through Reverse Repo, and standing facility-SDF) 1. Variable rate reverse repo (Main % Fine-Tuning Operation), and 2. Standing facility-SDF 2. long-term variable rate reverse repo (LTRR) 2. Why is SLF included in the net liquidity (injected/borrowed) into the banks? 1. SLF denotes Standing Liquidity Facility provided to Standalone Primary Dealers (SPDs) 2. Funds borrowed under this is added to the "Other Deposits with RBI" in the reserve money equation. So while technically the amount lent under this facility is not directly borrowed by a bank to meet its reserve requirement, the amount denotes lending by the central bank and gets assimilated in system liquidity by virtue of SPDs holding accounts in banks. 3. Also cash balances of govt. with RBI is potential (eventually) source of liquidity for the banks, and hence total liquidity can also be expressed as cash balances of govt. with RBI and banking system liquidity. 3. In terms of [Reserve Money](Reserve%20Money.md#2.1%20Net%20Reserve%20Bank%20credit%20to%20Government), it is the head "Net RBI Credit to Banks & Commercial Sector". 4. F. Net liquidity injected **(combined = outstanding including today's operations)** [injection (+)/absorption (-)] \= (5) Net liquidity injected from **today's** operations [injection (+)/absorption (-)] *(Daily Flow Impact)* \+ E. Net liquidity injected from **outstanding** operations [injection (+)/absorption (-)] *(Stock Impact)* 5. Based on suggestion of the [Group of 2019](RBI_Group-Committee_20190926_Report%20of%20the%20Internal%20Working%20Group%20to%20Review%20the%20Liquidity%20Management%20Framework.pdf), the format of the daily press release detailing MMO was changed, and Today's Operations (daily flow impact) was separated from the Outstanding Operations (stock impact). ### Banking System Liquidity (System Liquidity) under LAF+SLF 1. **This refers to the net outstanding liquidity availed from the RBI by both, banks under the LAF (and LTR/LTRR) and by primary dealers under the SLF minus excess reserves maintained with the RBI. So this gives "Net Dependency on RBI for borrowed reserves"** 2. With this, we define [Banking System Liquidity (System Liquidity)](https://rbi.org.in/scripts/PublicationReportDetails.aspx?ID=944#CP37:~:text=System%20liquidity%20%3D%20Net,is%20in%20surplus.) availed from RBI at any given day as Net liquidity injected under LAF + SLF (outstanding including today's operations) (F. Net liquidity injected (outstanding including today's operations) [injection (+)/absorption (-)]) \- Excess reserves maintained by banks where, -> Net borrowing under LAF and other operations \= Total of all repo+MSF+SLF – (Total of all reverse repo+SDF deposits) and -> Excess reserves maintained by banks (reserves over and above the required CRR) = Actual reserves (balances) maintained by banks – Required reserves 3. A positive figure for equation would indicate system liquidity is in deficit (viz. there is positive demand for borrowed reserves) and hence there was an injection. 4. Negative figure would indicate system liquidity is in surplus (viz. there is negative demand for borrowed reserves) and hence there was an absorption. These are common term used in RBI's communications. 1. [Example:](https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=59229) As on December 02, 2024, banking system liquidity is in surplus and it is around Rs 89,450 crore. For RBI, this is negative demand for borrowed reserves and hence system liquidity surplus, as reflected in net absorptions (outstanding), is Rs 89,450 crore. 5. [Neutrality](https://rbi.org.in/scripts/BS_ViewBulletin.aspx?Id=21536#:~:text=6-,Neutrality,-is%20defined%20as) is defined as systemic liquidity not being in deficit or surplus consistently, i.e., the LAF oscillates between net injection and net absorption of liquidity. ==If Net LAF measures banks’ dependence on RBI for borrowed reserves, systemic liquidity measures the net dependence after adjusting for excess reserves parked with RBI.== ### Calculation - System Liquidity (availed under the LAF+SLF) 1. Let us consider an example to measure systemic liquidity (availed under the LAF and SLF). 2. The systemic liquidity surplus, as reflected in net absorptions, **under the LAF**, averaged "4.36 lakh crore" during the period March 27- April 14, 2020", said Governor of RBI in his [press briefing on April 17, 2020](https://website.rbi.org.in/documents/87730/21555553/Governorstatementf22e618703ae48a4b2f6ec4a8003f88d.pdf/1ff4426a-a3e3-1f7d-8808-87c4697197a0?version=1.0&t=1688370393137). 1. However, in this calculation liquidity injected under LTR (T-LTRO) has also been included. This is "loose" usage of the word "under the LAF" >[!normalp] > <iframe src= "https://docs.google.com/spreadsheets/d/e/2PACX-1vQPb_HkHe_tD34QE59pDCIayI3ddJxEStR7GDq6Tp5YQBsAK29ZGGE0Oh4SXwhWDkoT501pJyVbdKCF/pubhtml?gid=87413939&amp;single=true&amp;widget=true&amp;headers=false" width="150" height="300" style="overflow: auto; resize: both; aspect-ratio: 16 / 9; width: 100%; height: 100%;"></iframe> ### Banking System Liquidity (Autonomous Drivers & Instruments) Here the word "durable or transient" have not been defined by the RBI in quantitative terms. Banks include SPDs also. Reference - [Report of the Internal Working Group to Review the Liquidity Management Framework (2019)](RBI_Group-Committee_20190926_Report%20of%20the%20Internal%20Working%20Group%20to%20Review%20the%20Liquidity%20Management%20Framework.pdf#page=16&selection=17,0,17,34) 1. **Drivers of Banking System Liquidity (combined-transient or durable)** 1. Autonomous (unintended changes in banks’ balance sheets arising from the RBI’s routine central banking functions, other than monetary policy operations). Here (+) : Indicates injection of liquidity into the banking system, and (-) : Indicates absorption of liquidity from the banking system 1. [[Measures to stabilise the exchange market#^569d8e|Net Forex Purchases (Interventions)]] (Buy-Sell) from Authorised Dealers (ADs) *(other than forex swaps)* 1. It change in NFA 2. [Currency in Circulation (CiC)](Reserve%20Money.md#1.1%20Currency%20in%20Circulation) 3. [Government of India (GoI) Cash Balances](Money%20Market%20Operations%20(MMO).md#^73) 4. [Ways and Means (WMA)](Ways%20and%20Means%20(WMA).md)/Overdraft to the Centre 5. Others: 1. hair cuts (margin requirements), valuation changes, or non-monetary liabilities/assets of RBI 2. Movement of funds from "Other deposits with RBI" to the banks 1. Example (*not common*): After a [currency swap](Bilateral,%20Multilateral%20Swaps,%20LoC,%20Liquidity%20Arrangements.md#Currency%20Swaps) by RBI with Bank of Japan where RBI receives US dollars and BoJ receives Indian Rupees, BoJ may want to use the rupee funds with RBI to buy government securities. 2. Liquidity Management (that is instruments/toolkit to manage short-term and durable liquidity) 1. Net LAF = Net Liquidity injected by the RBI 1. Total borrowing under LAF (through variable rate repos (Main & Fine-Tuning Operation), standing facility-MSF, but not LTRs) \- Total Deposits with RBI under LAF (through variable rate reverse repo (Main & Fine-Tuning Operation), Standing facility-SDF but not LTTR) 2. [Long-term repo (LTR)](Long-Term%20Repo%20Operations%20(LTROs).md) like On-Tap LTROs, SLTRO, TLTROs or long-term variable rate reverse repo (LTRR) 3. [Standing Liquidity Facility (SLF)](Money%20Market%20Operations%20(MMO).md#D.%20Standing%20Liquidity%20Facility%20(SLF)) to Standalone PDs (SPDs) 1-3 - Net RBI Credit to Banks & Commercial Sector 4. RBI's operations in government securities: 1. [[Open Market Operations (OMOs)|OMOs]] in [[G-Secs-Primary Market|dated central and state government securities]], in the form of outright purchases/sales, buybacks and redemptions. 2. [Cash Management Bills (CMBs)](G-Secs-Primary%20Market.md#^f52884) - when issued for liquidity absorption, for example in [[Measures to stabilise the exchange market#^2013|August of 2013]] *(not often)* 5. [MSS](Market%20Stabilisation%20Scheme%20(MSS),%202004.md) 6. [Foreign Exchange (Forex) Swap](Forex%20Swaps.md) auctions 7. [Cash Reserve Ratio (CRR)](Cash%20Reserve%20Ratio%20(CRR).md) balances 3. <span style="background-color:#ffffe5;">So Changes in Bank Reserves = Changes in Autonomous Drivers + Changes in Liquidity Management Drivers</span> 4. Major drivers (either autonomous or liquidity management) of demand of reserves (liquidity from the RBI) from the above are: 1. central bank’s imposition of cash reserve requirement (CRR) for banks, 2. meeting currency demand of the public and banks’ vault cash needs (CiC) 3. government cash management, and 4. forex operations 2. **Drivers of short-term/transient liquidity with banks** 1. Autonomous 1. Short-term movements in 1. NFA due to forex transactions (buy/sell) with Authorised Dealers (ADs), Currency in Circulation (CiC), Government of India (GoI) cash balances 2. Ways and Means [(WMA)](Ways%20and%20Means%20(WMA).md)/Overdraft to the Centre 2. Others - change in valuation, hair cuts, margin requirements, etc. 2. Liquidity Management 1. Net LAF $=$ (Repo+SLF+MSF)$-$(Reverse Repo+SDF) 1. Variable rate repos (VRR), variable rate reverse repos (VRRR) 1. Main Operation - 14 days 2. Fine-tuning operations - Up to 13 days 2. Standing facilities - MSF, SDF 2. [Standing Liquidity Facility (SLF)](Money%20Market%20Operations%20(MMO).md#D.%20Standing%20Liquidity%20Facility%20(SLF)) to SPDs Both of the above are also called "Net RBI Credit to Banks & Commercial Sector" 3. **Drivers of durable/structural liquidity with banks** 1. Autonomous 1. Net Forex Purchases (Buy-Sell) from Banks (that are Authorised Dealers-ADs) 2. Currency in Circulation (CiC) 3. Government of India Cash Balances 4. Others - change in valuation, hair cut, changes in non-monetary liabilites/Assets of RBI 2. Liquidity Management 1. Long-term repo (LTR) or reverse repos (LTRR) 2. RBI's operations in government securities: 1. [[Open Market Operations (OMOs)|OMOs]] in [[G-Secs-Primary Market|dated central and state government securities]], in the form of outright purchases/sales, buybacks and redemptions. 2. [Cash Management Bills (CMBs)](G-Secs-Primary%20Market.md#^f52884) - when issued for liquidity absorption, for example in [[Measures to stabilise the exchange market#^2013|August of 2013]] *(not often)* 3. Changes in GoI cash balances with RBI due to [[Market Stabilisation Scheme (MSS), 2004|MSS]] in dated G-Secs, T-Bills, CMBs (usually happens after a period of capital inflows) *(not often)* 4. [Foreign Exchange (Forex) Swap](Forex%20Swaps.md) auctions 5. [Cash Reserve Ratio (CRR)](Cash%20Reserve%20Ratio%20(CRR).md) balances ### Movements (Increase/Decrease) in Banking System Liquidity 1. [Example:](https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=59229) 1. As on December 02, 2024, banking system liquidity under LAF (LAF, SLF, LTR/LTRR) is in surplus and it is around Rs 89,450 crore. 2. Thus there is a negative demand for borrowed reserves and hence net outstanding system liquidity is in surplus, as reflected in the net absorptions, under LAF+SLF, and is Rs 89,450 crore. 3. ==Here we divide the drivers of banking system liqudity into factors which increases/deceases them== 2. **Increase in banking system liquidity:** 1. RBI’s liquidity augmenting measures (RBI to Banks, RBI to Govt.): 1. Lending under the LAF (repo and MSF), long-term repos (LTR/LTRR) 2. Reversal of Liquidity parked with RBI under the LAF (reverse repo and SDF), long-term reverse repos (LTRR), 3. SLF to SPDs 4. Net OMO (including CMBs) purchases, 5. Net forex purchases (accretion in forex reserves) - When RBI buys dollars & injects rupees during forex inflows (accretion of forex reserves), it adds to the durable liquidity 6. Reduction in non-monetary liabilities of the RBI, or increase in non-monetary assets of the RBI, such as: 1. Higher dividend by RBI to the govt 1. Here only to the extent the funds are transferred from GoI cash balances to the banks for govt. spendings, the "excess reserves" of the banks increases. 2. In other words, as and when govt. spends the dividend amount, it increases banking system liquidity. 3. JIT Mechanism - RBI and Govt of India's Just-in-Time (JIT) mechanism, implemented through SNA-SPARSH is a public financial management system designed to release funds for *Centrally Sponsored Schemes (CSS)* only when needed, reducing idle funds and preventing parking of money in bank accounts. 2. WMA/Overdraft to the centre 3. RBI buying a commercial property in South Mumbai, and others 7. Movement of funds from "Other deposits with RBI" to the banks 1. Example (*not common*): After a [currency swap](Bilateral,%20Multilateral%20Swaps,%20LoC,%20Liquidity%20Arrangements.md#Currency%20Swaps) by RBI with Bank of Japan where RBI receives US dollars and BoJ receives Indian Rupees, BoJ may want to use the rupee funds with RBI to buy government securities. 8. Reduction in required reserves due to reduction in CRR (or changes in NDTL). 2. Higher government spending (and thereby lower cash balances of govt. with RBI) for: 1. payments for projects, salaries, redemptions/buyback/coupon/interest payments (not to RBI), redemption/maturity of loans and the like 2. elections to boost consumption through subsidies, schemes, transfers, campaigns, etc. until Model of Conduct (MCC) is implemented 3. repurchase of MSS securities (and injection of the MSS balances), When govt. spends and their balances with RBI declines, there would be injection of liquidity into the banking system, despite a situation in which, for instance, monetary policy is biased towards tightening liquidity. 3. lower 'cash-in hand with public' (i.e. lower [[Reserve Money#^6cf04a|currency in circulation]] or lower demand for currency) adds to system liquidity. It may be due to: 1. lower spending during non-peak/non-spending/non-festival seasons 2. more cash deposits are made by public with the banks. 3. deposit of banknotes with banks (like Rs. 2000). Here "Cash-in-hand (CiC)" falls, excess reserves rises. 4. To recall, currency in circulation is total banknotes, rupee coins and small coins outside the RBI. The components are currency with public + cash in hand (with banks), the latter being a minor component. 3. **Reduction in banking system liquidity** 1. RBI's liquidity absorption operations (Banks to RBI, Govt. to RBI) 1. Absorption under the LAF (reverse repo and SDF), long-term reverse repos (LTRR), 2. Reversal of liquidity borrowed by banks under LAF through repo and MSF), long-term repo operations (LTR), SLF to SPDs, 3. Higher margins, hair cut when borrowing under the LAF from RBI 4. Increase in CRR rate or in NDTL due to growth in bank credit or cash getting deposited with banks 5. Net OMO ( including CMBs) sales, 6. Net forex sales (decrease in forex reserves), 1. When RBI sells dollars and absorbs rupees, it drains or reduces durable liquidity 2. *Net transactions in gold is not included as it is a foreign commodity.* 7. Increase in non-monetary liabilities of the RBI, or decrease in non-monetary assets of the RBI. 1. Interest payments by the govt. to the RBI 2. Reversal of WMA/Overdraft, that is transfer from the centre to the govt. 3. RBI selling any of its properties 8. Movement of funds from the banks to "Other deposits with RBI". 1. Example: When BoJ sells its holding of G-Secs, funds may move from banks to "Other Deposits with RBI" 2. Lower govt. spending and tax collections increases government cash balances with RBI Accumulating Government cash balances with the central bank act, in effect, as withdrawal of liquidity from the system and have the same effect as that of monetary tightening, albeit without any intention to do so by the monetary authority. 1. Lower government spending (disbursement lag) - Lower disbursal by govt. for its projects due to the start of the year. 2. elections lead to higher cash balances of govt. with RBI due to lower government spending once the Model Code of Conduct (MCC) is implemented and hence lower bank deposits 3. need for maintaining or building up cash balances gradually over many weeks ahead of large, known disbursements such as lumpy redemption of bonds 4. Tax collections lead to outflow of liquidity from the banks. April-May sees rise in govt. cash balances with RBI due to tax collections 5. Though some portion/surplus govt. cash balances is auctioned by RBI through LAF under repo which increases the system liquidity, it is for short tenor and time and hence temporary in nature. 6. primary market sales of government securities through auction 7. MSS sales 3. Higher "cash-in-hand" with public (i.e. higher [[Reserve Money#^6cf04a|currency in circulation (CiC)]] or higher demand for currency) reduces system liquidity, as reserves get converted to cash, which moves from banks to public. It may be due to: 1. festive season spending, 2. withdrawal of the cash by the public in new notes (expansion in CiC) against the Rs 2000 bank-notes surrendered with the banks. Banks may draw down their excess reserves, if any, leading to increase in the currency in circulation. To replenish their balances with RBI, the demand for reserves by banks rises. On the balance sheet, liabilities under the head "Deposits with RBI" decreases, and that under "Currency in circulation increases". So there is a transfer of liability along with transfer of G-Secs from Banking depart to Issue dept. At the same time, the drawdown of excess reserves reduces the credit creating potential of the banks. Thus, an increase in demand for currency leads to deceleration in growth of money supply due to a fall in the money multiplier. [^3] 3. a growth in bank credit (due to the changes in the NDTL and withdrawal of some portion as cash) compared to the growth in cash deposits of public with banks (or RBI liquidity injections). ## RESERVE POSITION 1. The third part of the report consists of RESERVE POSITION. 2. Reserve Money is made up of = currency in circulation + (*reserves+other balances held by banks with RBI*)+other deposits held with RBI) and, (only if there is any, *government's surplus cash, which is surplus that is with RBI and it can auction*). ### G. Cash Reserve Position of Scheduled Commercial Banks This includes two parts: 1. Cash balances with RBI (Bankers' Deposit with RBI) as on the previous day\- This amount includes the end-of-the day, and updated daily, cash balances maintained with the RBI by the scheduled commercial banks for reserve requirement and any extra balances for settlements of transactions. 2. Average Daily Cash Reserve Requirement for the current fortnight \- This is the daily average reserves required to be maintained by the the scheduled commercial banks for the current fortnight, according to the CRR ratio decided in the monetary policy. _Non- Scheduled Banks also maintain CRR with the RBI_ 3. Excess Reserves = Bankers' Deposit with RBI (1) - Required reserves (2) ==Note: A quick way to find the start date and the end date of this fortnight is to check the date for *I. Net durable liquidity [surplus (+)/deficit (-)] as on*== ### H. Government of India Surplus Cash balance Reckoned for Auction 1. This is the **surplus** cash balance of government of India with RBI, and is thus ==held for [auction](RBI_Press%20Release_20150319_Auction%20of%20Surplus%20Cash%20Balance%20of%20Government%20of%20India.pdf), effective from December 16, 2014.== Usually, the balance is zero. if there is any, RBI [lends](https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=31904#:~:text=The%20auction%20amount%2C%20if%20any%2C%20will%20be%20decided%20by%20the%20Reserve%20Bank%2C%20based%20on%20an%20assessment%20of%20the%20liquidity%20conditions%20as%20well%20as%20Government%20cash%20balances%20available%20for%20auction%20for%20the%20day%2C%20and%20will%20be%20announced%20around%202.30%20PM.) it to banks in the LAF operations, mostly for a overnight period at a variable repo rate. 2. It is not the total cash balance of the govt. with RBI. 3. In other words, RBI also considers the "surplus cash balance of the government for auction" while lending under the LAF (through VRR). 4. This surplus cash only adds to the transient liquidity of the banking system, as the tenor is short and amount is not large. 5. But the total cash balances of govt. with RBI eventually ends with banks, when govt. spends them. So they are considered as potential source of banking system liquidity. One can even add the two and consider the total as total liquidity. ==In other words, system liquidity adjusted for GoI balances = system liquidity-cash balance of govt. with RBI 6. [March 19, 2015](RBI_Press%20Release_20150319_Auction%20of%20Surplus%20Cash%20Balance%20of%20Government%20of%20India.pdf) - From April 06, 2015, this surplus cash balance of GoI reckoned for auction is indicated in the daily release of this report. 7. Apart from this, as a banker to the government, RBI also manages several other banking needs of the government. This **[[Cash Operations of Government OPEN|note]]** has more details. ### I. Net durable liquidity [surplus (+)/deficit (-)] 1. For better communication of liquidity management policy, and to reduce the information asymmetry between the Reserve Bank and market participants, Internal Working [Group](RBI_Group-Committee_20190926_Report%20of%20the%20Internal%20Working%20Group%20to%20Review%20the%20Liquidity%20Management%20Framework.pdf) to Review the Liquidity Management Framework (report submitted in 2019), recommended that the Reserve Bank’s quantitative assessment of durable liquidity conditions of the system be published on a fortnightly basis with a fortnightly lag. 2. It had also suggested to separate the daily operations (daily flow) from the outstanding operations (stock) 3. From Feb 17, 2020, this new section was added to the daily press release [^2]. 4. It shows data as on the last day of the second preceding fortnight, fortnight is the period from the first day to the fifteenth day of each calendar month or sixteenth day to the last day of each calendar month, both days inclusive. 1. That is, if a report shows as on April 15, 2026, the next one would be April 30, 2025 and so on.. 2. *Earlier [(withdrawn)](RBI_Notification_20251211_Reserve%20Bank%20of%20India%20(Commercial%20Banks%20–%20Cash%20Reserve%20Ratio%20and%20Statutory%20Liquidity%20Ratio)%20Amendment%20Directions,%202025.pdf)* - It shows data as on the last reporting Friday, that is last Friday of the second preceding fortnight. That is, if a report shows as on February 7, 2025, the next one would be February 21, 2025 and so on... 5. One easy way to [derive/estimate](RBI_Group-Committee_20190926_Report%20of%20the%20Internal%20Working%20Group%20to%20Review%20the%20Liquidity%20Management%20Framework.pdf#page=15&selection=23,41,24,55) Durable liquidity \[deficit(+)/surplus(-)\] = System liquidity - GoI balances with RBI. 1. If the net borrowing is more than GoI balances, the durable liquidity of the system is in deficit, that is, there is demand for permanent/outright reserves 6. In MMO report, the sign is changed, and so durable liquidity \[deficit(-)/surplus(+)\] 7. Here the word "durable" has not bee defined by the RBI in quantitative terms. > [!normalg] > It needs to be emphasised that the total system demand for reserves on any given day would be met by the Reserve Bank through one or more liquidity operations or windows. Therefore, from the system perspective, the distinction between durable liquidity and frictional liquidity is not very pertinent. The distinction, however, is important for the Reserve Bank from its 13 liquidity planning point of view to minimise the need for fine-tuning operations. Thus, a longerterm or outright operation would be more appropriate to deal with durable liquidity conditions. > > *-[Report of the Internal Working Group to Review the Liquidity Management Framework, 2019](RBI_Group-Committee_20190926_Report%20of%20the%20Internal%20Working%20Group%20to%20Review%20the%20Liquidity%20Management%20Framework.pdf#page=15&selection=39,0,39,91)* ## Drivers/Sources of durable liquidity with the banking system 1. Durable liquidity (liquidity of durable nature, that is long-term funds, different from transient/frictional) injected by RBI operations (as part of liquidity management operations) into the *banking system* is reflected in excess reserves (banks’ balances) with the RBI. 2. But there are other factors like currency in circulation, other deposits, and government balances reflect redistribution of liquidity rather than injection. 3. They can be "Autonomous" or "Liquidity management" drivers ### Autonomous Drivers of Durable Liquidity These sources provide or drain reserves while the RBI performs central banking functions other than monetary policy operations 1. ==[Net forex Purchase/sale with Authorised Dealers(ADs)](Measures%20to%20stabilise%20the%20exchange%20market.md#^569d8e)== 1. When RBI buys dollars from ADs & injects rupees during forex inflows (accretion of forex reserves), it adds to the durable liquidity of the system 2. When RBI sells dollars to ADs and absorbs rupees, it drains or reduces durable liquidity 3. Net transactions in gold is not included as it is a foreign commodity, and forex swaps are mostly liquidity management tools, but in theory, swaps can appear under autonomous liquidity if they are not part of deliberate RBI operations. 4. **Must Read** - [Box 1 – Impact of capital flows on system demand for reserves](RBI_Group-Committee_20190926_Report%20of%20the%20Internal%20Working%20Group%20to%20Review%20the%20Liquidity%20Management%20Framework.pdf#page=19&selection=49,0,57,19) in Report of the Internal Working Group to Review the Liquidity Management Framework, 2019 2. ==[[Reserve Money#1.1 Currency in Circulation|Currency in Circulation (CiC)]]== 1. the banking system liquidity is drained: 1. when there is demand for currency by public as it leads to movement of cash from banks to public. 1. Banks may draw down their excess reserves, if any, leading to increase in the demand for reserves by banks. This increases the currency in circulation. On the balance sheet, liabilities under the head "Deposits with RBI" decreases, and that under "Currency in circulation increases". So there is a transfer of liability along with transfer of G-Secs from Banking depart to Issue dept. At the same time, the drawdown of excess reserves reduces the credit creating potential of the banks. Thus, an increase in demand for currency leads to deceleration in growth of money supply due to a fall in the money multiplier. [^3] 2. massive deposit surplus created by demonetization was drained through two main channels: *autonomously*, as remonetization occurred and the public gradually withdrew new notes (expanding CiC back to normal levels), and *actively*, as the RBI deployed tools like VRRR auctions (alongside MSS bonds and temporary CRR hikes) to mop up the remaining excess. 2. a growth in bank credit (only the portion withdrawn as cash) compared to the growth in cash deposits of public with banks 2. the banking system liquidity increases: 1. when there is decrease in cash-in-hand with public as more cash deposits are made by public with the banks. 3. [RBI's Annual Report 2016 - Boxes II.3-Currency Demand in India](RBI_Annual%20Report_2016.pdf#page=42&selection=4,0,5,24) 4. 24 $\times$ 365 retail payment systems (RTGS since [Dec 04, 2020](RBI_Notification_20201204_24x7%20Availability%20of%20Real%20Time%20Gross%20Settlement%20(RTGS)%20System.pdf), and NEFT since [Dec 6, 2019](RBI_Notification_20191206_Availability%20of%20National%20Electronic%20Funds%20Transfer%20(NEFT)%20System%20on%2024x7%20basis.pdf)) has also put pressure on distribution and management of liquidity within the system. 3. ==Government of India cash balances== - Changes, that is build-up or drawdown, in cash balances of govt. with RBI ^73 1. Banks and Government of India 1. Lower govt. spending, tax collections, build of balances for upcoming interest and maturity payments increases government cash balances with RBI 1. Lower disbursal by govt. for its projects (disbursement lag) due to the start of the year. 2. elections lead to higher cash balances of govt. with RBI due to lower government spending once the Model Code of Conduct (MCC) is implemented and hence lower bank deposits 3. need for maintaining or building up cash balances gradually over many weeks ahead of large, known disbursements such as lumpy redemption of bonds 4. Tax collections lead to outflow of liquidity from the banks. April-May sees rise in govt. cash balances with RBI due to tax collections 5. Though some portion/surplus govt. cash balances is auctioned by RBI through LAF under repo which increases the system liquidity, it is for short tenor and time and hence temporary in nature. 6. sale of govt. securities in primary issues Accumulating Government cash balances with the central bank act, in effect, as withdrawal of liquidity from the system and have the same effect as that of monetary tightening, albeit without any intention to do so by the monetary authority. 3. Higher government spending decreases GoI cash balances with RBI. It may be for: 1. payments for projects, salaries, redemptions/buyback/coupon/interest payments (not to RBI), redemption/maturity of loans, etc. 2. elections to boost consumption through subsidies, schemes, transfers, campaigns, etc. until Model of Conduct (MCC) is implemented When govt. spends and their balances with RBI declines, there would be injection of liquidity into the banking system, despite a situation in which, for instance, monetary policy is biased towards tightening liquidity. 4. JIT Mechanism- RBI and Govt of India's Just-in-Time (JIT) mechanism, implemented through SNA-SPARSH is a public financial management system designed to release funds for Centrally Sponsored Schemes (CSS) only when needed, reducing idle funds and preventing parking of money in bank accounts. So only to the extent the funds are transferred under JIT, the "excess reserves" of the banks increases. 2. RBI and Government of India 1. payments of interest by govt to RBI for its holdings of government securities, reduces liquidity with banks, and increases govt. cash balances with RBI, which in turn increases non-monetary liabilities of RBI. So reserve money falls. 2. transfer of surplus profits, that is dividends, by RBI to the GoI increases govt. cash balance with RBI. As and when govt. spends this amount, it increases banking system liquidity. 5. [Ways and Means (WMA)](Ways%20and%20Means%20(WMA).md)/Overdraft to the Centre *- listed as a separate item (and not under GoI balances)* 6. Others: 1. Other deposits with RBI - movement of deposits of foreign central banks with RBI to the banking system 2. hair cuts (margin requirements), valuation changes, or non-monetary liabilities/assets of RBI ### Liquidity Management as driver of Durable Liqudity These are the instruments/tools to manage durable liquidity 1. Longer tenor repos like [LTROs/T-LTROs](Long-Term%20Repo%20Operations%20(LTROs).md) or long-term reverse repos (LTRR) 1. First leg of repos add to the liquidity 2. Maturity of repos drain the liquidity 2. ==[Cash Reserve Ratio (CRR)](Cash%20Reserve%20Ratio%20(CRR).md) balances== *(rarely used)* 1. The primary demand for reserves by banks arises because banks must hold CRR with RBI. 2. Any change in CRR rate or exemptions/adjustments in daily maintenance of CRR or changes in NDTL *(autonomous)* directly affects the durable liquidity in the banking system. 3. Net RBI transactions in secondary market for government securities through: 1. [Open Market Operations (OMOs)](Open%20Market%20Operations%20(OMOs).md) - OMO purchases or Open Market purchase operations (and buybacks/redemptions ) add to the liquidity, whereas OMO sales or Open Market sales operations drains liquidity. These transactions may be through auctions or on NDS-OM. 2. [Cash Management Bills](G-Secs-Primary%20Market.md#^f52884) 4. GoI cash balances due to sale/purchase of [[Market Stabilisation Scheme (MSS), 2004|MSS]] securities (dated G-Secs, T-Bills, CMBs), after a period of capital inflows *(not often)* 1. MSS securities are Government of India securities and not RBI assets. RBI acts only as an agent and maintains the MSS account, into which the proceeds are impounded. While MSS securities do not appear on the RBI’s asset side, the corresponding government balances form part of reserve money. Consequently, MSS issuance and redemption absorb or inject reserve money and have the same impact on system-level durable liquidity as outright OMOs) changes the distribution of liquidity between the banking system and the government. 5. [Forex Swaps](Forex%20Swaps.md) ### Major Drivers of Durable Liquidity From the above drivers, these are the major ones: 1. Imposition of CRR (CRR balances), 2. ==Government of India cash balances, 3. ==CiC (the public withdrawing cash),== 4. OMOs - Domestic Assets of RBI 1. *not often - CMBs* 5. Net forex transactions *(spot + to some extent, derivatives on the day of settlement of any leg)* (both happens with AD-I)= NFA (Net Forex Assets of RBI) ### Drivers of Durable Liquidity (due to RBI) 1. [Cash Reserve Ratio (CRR)](Cash%20Reserve%20Ratio%20(CRR).md) (due to change in CRR rate, additional CRR, minimum daily CRR balance) 2. Longer tenor repos like [LTROs/T-LTROs](Long-Term%20Repo%20Operations%20(LTROs).md) or long-term reverse repos (LTRR) ~~Changes in CRR by RBI (rarely used)~~ 3. OMOs (and CMBs) - part of NDA-Net Domestic Assets of RBI ~~change in GoI Balances (due to MSS)~~ 4. Net forex transactions *(spot + to some extent, derivatives on the day of settlement of any leg)* (both happens with AD-I)= NFA (Net Forex Assets of RBI) Autonomous - NET Forex Transactions *(not FX swaps)*, Liquidity Management - CRR, LTRs, OMOs, FX Swaps ### Major Drivers of Durable Liquidity (due to RBI) 1. OMOs (and ~~CMBs~~) - part of NDA 2. Net forex transactions (in the spot, and *to some extent, forex derivatives with banks and they only impact domestic rupee liquidity on settlement of any leg*) - together they make up NFA (Net Forex Assets) of RBI Autonomous - NFA (only Net purchase/sale in spot) Liquidity Management - OMOs **So OMOs (NDA) and forex operations (NFA) can both [[Reserve Money.md#^1cef6c|modulate]] each other. _The word “reserves” can be used to refer to forex reserves in the form of gold, foriegn currency assets, etc., or domestic (rupee) reserves in the form of bank reserves._ Further Reading: >1. [ Table 3: Variation in Reserve Money and Main Durable Liquidity Drivers](RBI_Monthly_Bulletin_Article_20130810_Forex%20Market%20Operations%20and%20Liquidity%20Management.pdf) in the article "Forex Market Operations and Liquidity Management" in RBI Bulletin August 2018 >2. [Liquidity Management by the Reserve Bank](RBI_Annual%20Report_2006.pdf#page=144&selection=4,0,4,57) in RBI's Annual Report-2006 >3. [Box III.2 - Challenges to Liquidity Management](RBI_Annual%20Report_2008.pdf#page=204&selection=70,0,71,34) in RBI's Annual Report-08. >4. [Report of the Internal Working Group to Review the Liquidity Management Framework, 2019](RBI_Group-Committee_20190926_Report%20of%20the%20Internal%20Working%20Group%20to%20Review%20the%20Liquidity%20Management%20Framework.pdf) | [Link](https://rbi.org.in/scripts/PublicationReportDetails.aspx?ID=944) >5. Box III.1 - [Liquidity Management Challenges from Forex Market Operations](RBI_Annual%20Report_2025.pdf) in RBI's Annual Report-2025 ## Groups & Committees 1. These are the [committees/working groups/discussion papers](Monetary%20Policy%20Frameworks%20in%20India.md#Groups%20and%20Committees) constituted on issues of monetary policy (including liquidity management). ## Reading List (Non-RBI Institutions) 1. Axis Mutual Fund. (2024, November 25). *Is the best of banking liquidity behind us?* [Link](https://www.axismf.com/cms/sites/default/files/pdf-factsheets/Acumen%20-%20Is%20the%20best%20of%20Banking%20Liquidity%20behind%20us.pdf) 2. SBI's [Ecowrap](https://sbi.bank.in/web/sbi-in-the-news/research-desk) 3. [ICICI's Economic Research Reports](https://www.icici.bank.in/corporate/globaltradeservice/research-reports) 4. [HDFC's Research](https://v.hdfcbank.com/wealth/our-research.html#seemorepresent) 5. [Axis Bank](https://www.axiscapital.co.in/research) 6. [CCIL Research](https://www.ccilindia.com/research-articles) 7. [[Resources|More]] ## Data Releases 1. Daily Money Market Operations data 2. Monthly Bulletin - Liquidity Operations by RBI ## Related Notes: 1. [[Key Rates]] 2. [[Liquidity Adjustment Facility (LAF)]] 3. [[Standing Deposit Facility (SDF), 2018]] 5. [[Marginal Standing Facility (MSF), 2011]] 6. [[Cash Operations of Government OPEN]] 7. [[Market Stabilisation Scheme (MSS), 2004]] 8. [[Monetary Policy Frameworks in India|Monetary Policy Framework in India-Past & Current]] ## References 1. RBI. (2020e). Governor’s Statement, April 17, 2020 2. Duvvuri Subbarao. (Jan 31, 2011). ==Implications of the Expansion of Central Bank Balance Sheets==. (Comments of Dr. Duvvuri Subbarao, Governor, Reserve Bank of India at the Special Governors’ Meeting in Kyoto, Japan, on January 31, 2011.). [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=547) | [pdf](RBI_Speeches_20110131_Implications%20of%20the%20Expansion%20of%20Central%20Bank%20Balance%20Sheets.pdf) 3. RBI. (2014, January 21). [Report](https://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/ECOMRF210114_F.pdf) of the Expert Committee to Revise and Strengthen the Monetary Policy Framework. Chairman: Dr. Urjit R. Patel, Deputy Governor, Reserve Bank of India. 4. RBI. (2025, May). *Report of the Working Group on Comprehensive Review of Trading and Settlement Timings of Markets Regulated by the Reserve Bank* \[Report\]. [Link](https://rbi.org.in/scripts/PublicationReportDetails.aspx?ID=1292) 5. RBI. (Aug, 2018). *Table 3: Variation in Reserve Money and Main Durable Liquidity Driver*s. RBI Bulletin (August-2018). 6. [More References](Monetary%20Policy%20Frameworks%20in%20India.md#References) 7. **Others** 1. SBI. (2025, January 20). SBI Research Report. (Issue #26, FY25). Ecowrap. State Bank of India. [Link](https://sbi.co.in/documents/13958/43951007/Liquidity_Management_Framework_SBI_Report.pdf/42de64f5-272e-b4fb-6738-29bd0c00481e?t=1737353736016) [^1]: [[Reserve Money#^981e2b|Reserve Money-Net Foreign Exchange Assets]] [^2]: [Internal Working Group to Review the Liquidity Management Framework-2020](https://rbi.org.in/scripts/PublicationReportDetails.aspx?ID=944#:~:text=X.2%20The%20Group%20also%20recommends%20that%20a%20quantitative%20assessment%20of%20durable%20liquidity%20conditions%20of%20the%20banking%20system%20be%20published%20on%20a%20fortnightly%20basis%20with%20a%20fortnightly%20lag) [^3]: A.K. Mitra and Abhilasha. Determinants of Liquidity and the Relationship between Liquidity and Money: A Primer. RBI WPS (DEPR) : 14/2012. [Link](https://rbi.org.in/scripts/PublicationsView.aspx?Id=14331) | [pdf](RBI_Research_WP_20120726_RBI%20WPS%20(DEPR)%20-%2014:2012-%20Determinants%20of%20Liquidity%20and%20the%20Relationship%20between%20Liquidity%20and%20Money-%20A%20Primer.pdf)