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RBI Reassures Banks: Commitment to Maintain System Liquidity Above 1% of NDTL

Economy

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Published on 20th November 2025, 8:01 PM

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Author

Abhay Singh | Whalesbook News Team

Overview

The Reserve Bank of India has assured bankers it will maintain banking system liquidity above 1% of Net Demand and Time Liabilities (NDTL). The central bank will intervene using measures like variable rate reverse repo auctions or other operations if liquidity remains in deficit for an extended period, addressing concerns after liquidity briefly turned negative in October due to currency spot market interventions and festive season leakage.