Motilal Oswal: A Primer On RBI’s Balance Sheet 

Motilal Oswal: A Primer On RBI’s Balance Sheet

A pedestrian walks past the Reserve Bank of India (RBI) building in Mumbai, India. (Photographer: Kanishka Sonthalia/Bloomberg)

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Motilal Oswal Report

The Reserve Bank of India has injected large liquidity into the financial system during the past five months through various measures. It has cut policy interest rates, (temporarily) reduced the cash reserve ratio and announced long-term refinance operations – targeted or not.

Consequently, the banking system’s net surplus has increased from Rs 3 trillion (or 2.2% of net demand and time liabilities) in early 2020s to Rs 4.3 trillion (or approximately 3% of NDTL) currently.

In this note, we discuss the impact of these liquidity-enhancing measures on the RBI’s balance sheet and money supply.

Click on the attachment to read the full report:

Motilal Oswal Ecoscope RBI.pdf
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