Liquidity faces a bit of squeeze as Rs 2 lakh crore flows to tax kitty

March 18, 2026

India’s banking system liquidity surplus narrowed to ₹75,483 crore due to advance tax outflows and forex market interventions. This pushed money market rates up, prompting the RBI to conduct a repo operation. Economists estimate the RBI sold over $15 billion to support the rupee.

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