Delhi 4 march 2025 : The Reserve Bank of India (RBI) may have to inject additional ₹1 lakh crore into the banking system by March to maintain liquidity at an equilibrium level, according to a report by the State Bank of India (SBI) research.
The report highlighted that systemic liquidity remains tight, with a deficit of approximately ₹1.6 lakh crore as of the end of February. The average liquidity deficit is higher, at around ₹1.95 lakh crore.
The banking system has been facing a severe liquidity crunch in recent months, making it one of the worst liquidity shortages in over a decade.
It said “We believe around ₹1 trillion more will be needed by March still to keep the systemic liquidity just in equilibrium….. Daily FPI outflows of significant amount and the maturing of forward transactions within 1/2/3 month and hence the RBI will need to infuse further liquidity.”
Liquidity conditions in the banking system have deteriorated significantly over the past few months. In November 2023, the system had a surplus liquidity of ₹1.35 lakh crore.
Summary: According to an SBI report, the RBI may need to inject ₹1 lakh crore by March to maintain adequate liquidity in the market.