Topic
liquidity
Finance RBI: Improving Liquidity Supporting Robust Credit Growth Amid Global Uncertainties
The Reserve Bank of India's latest State of the Economy report states that improving liquidity conditions are supporting robust credit growth, even as India's external sector remains steady with an improving outlook aided by foreign investment inflows. The central bank noted that India has navigated external uncertainties well, underpinned by healthy demand and resilient industrial and services sectors. Retail inflation edged up to an 18-month high of 4.4% in June.
Finance Q1 Bank Credit Flow Surges 10x as Market Mop-Up Collapses, RBI Data Shows
In Q1 FY27, bank credit to the commercial sector surged more than tenfold, while capital market mobilisation collapsed, according to RBI data. Incremental non-food bank credit rose to Rs 5,05,152 crore from Rs 49,813 crore, raising its share to 65% of total resource flows. Corporate bond and equity issuances fell sharply, indicating a major shift in corporate funding sources.
Finance RBI Absorbs Net Liquidity of ₹70,888 Crore from Banking System in July 17 Operations
The Reserve Bank of India (RBI) absorbed net liquidity of ₹70,888.18 crore from the banking system as of July 17, 2026, according to its Money Market Operations data. The central bank conducted a 3-day Variable Rate Repo (VRR) at 5.26% and received ₹152,120 crore under the Standing Deposit Facility at 5.00%.
Finance Indian Government Plans Amendments to Enhance MSME Liquidity and Payment Resolution
The Indian government plans to amend the MSME Development Act to enhance liquidity for micro, small and medium enterprises. Key measures include statutory backing for the Udyam registration portal, decriminalisation of provisions, and an online dispute resolution mechanism to speed up payment recoveries.
Trade Finance Payment Delays Strain MSME Working Capital, Report Highlights Structural Gap
The Indian SME Receivables Report 2026 by Recordent reveals that delayed payments are severely straining MSME working capital, with average overdue receivables beyond 360 days at Rs 3.8 crore per firm and a national invoice payment cycle of 73 days, far exceeding regulatory guidelines of 45 days. The report, based on data from 1.1 lakh MSMEs and over 1 million transactions, identifies late payments as a key constraint on liquidity, growth, and financial stability.
Finance Banks Borrow ₹16,800 Crore at RBI VRR Auction, Signaling Comfortable Liquidity Conditions in Banking System
Banks borrowed only ₹16,800 crore from the Reserve Bank of India at its four-day Variable Rate Repo (VRR) auction, against the notified amount of ₹50,000 crore, indicating comfortable liquidity conditions. The cut-off rate stood at 5.26%, marginally above the policy repo rate of 5.25%, according to News on AIR.
Finance RBI to inject liquidity via Rs 50,000 crore repo auction ahead of MPC meeting
The Reserve Bank of India will conduct a Rs 50,000 crore repo auction to inject liquidity ahead of the Monetary Policy Committee meeting, according to a report by the TOI Business Desk on June 2, 2026. No further details were provided in the original report.
Business RBI Rejects Treasury Bill Bids, Signals Potential Rate Cut
The Reserve Bank of India (RBI) rejected bids for 182-day and 364-day treasury bills, accepting only 91-day bills at a 5.56% yield. This move suggests the RBI's intent to lower interest rates amid rising short-term yields and a widening spread between treasury bill yields and the policy rate.