RBI's additional liquidity support to wind down after March, bankers say

The Indian central bank’s additional liquidity support to lenders, which has pushed overnight rates ​towards the floor of the policy rate corridor in a bid to ‌ease money market stress and improve transmission, is unlikely ​to extend beyond March, according to bankers.Market participants ⁠say the liquidity push reflects an interim calibration, with the central bank aiming to ease short-term rates.India’s banking system liquidity surplus has averaged around 1.1 per cent ‌of deposits this month, inching past ...