Market participants expect the Reserve Bank of India (RBI) to obtain a sense of ease when the liquidity surplus comes down to around Rs. 1 trillion.
The excess funds that banks parked with the RBI through the liquidity adjustment facility (LAF) was over Rs. 2 lakh in most of the days in August.
The participants said the central bank may implement corrective measures aimed at absorbing the excess liquidity from the system if the surplus remains above Rs. 1 trillion.