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SURESHOT FUTURE & MCX EXPERT(LEARNING TECHNO.)πŸ’£πŸ’²πŸ’²πŸ’ΈπŸ‘‡πŸ‘‡πŸ’΅πŸ’΄πŸ’΄

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βœ… Banking System Liquidity Falls Sharply in May βœ… India’s daily average banking system liquidity surplus fell nearly 60% in May as inflows dried up. βœ… Liquidity surplus stood at β‚Ή1.63 lakh crore, just above 0.6% of banking deposits, compared with β‚Ή3.84 lakh crore in April. βœ… Tight cash conditions forced the RBI to conduct 8 variable rate repo auctions in May, against only 1 auction on April 30. βœ… RBI’s report suggests surplus liquidity in the 0.6%–1.1% range helps keep call money rates near the policy rate. βœ… Traders say weak government spending and continued outflows are putting pressure on liquidity. πŸ“Œ Impact: Tight liquidity can keep short-term rates firm and may influence RBI’s liquidity management ahead.

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