India's banking system liquidity surplus hits over 4.5-year high at Rs 7.76 lakh crore

India's banking system liquidity surplus has reached its highest point in over four years. This surge is attributed to record forex-inflow programs, easing short-term interest rates significantly. Experts anticipate this surplus will moderate by the third quarter of FY27 due to seasonal factors. The central bank is currently managing excess funds through temporary reverse repo operations.

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