The Reserve Bank of India’s Standard Deposit Facility saw a record high average quarterly balance of ₹2.6 lakh crore in June 2025, driven by banks parking surplus funds due to lower credit offtake. To manage this excess liquidity, the RBI has been actively using Variable Rate Reverse Repo auctions. Credit growth has slowed to 9.
Originally published by The Economic Times https://economictimes.indiatimes.com/markets