India central banker warns of dwindling money market liquidity

India’s call money market faces risks of dwindling liquidity, posing challenges for monetary policy transmission, the nation’s central bank chief said in a speech published on Saturday. Surplus liquidity in India has averaged 1.7 trillion rupees ($20 billion) a day this month, reversing a four-month deficit, as the RBI stepped up its liquidity infusions to support growth.

Source