RBI’S TO INITIATE RECOVERY IN MONEY-MARKET RATES VIA CASH TIGHTENING

HIGHLIGHTS

• The Reserve Bank of India aims to drain Rs. 2 trillion (equal to $27.3 billion) of banking funds.
• The 14-day reverse repo operation to drain the cash starts on 15 JAN 2021.

With Reserve Bank of India (RBI) taking first small step to unwind emergency pandemic measures, the key money-market rates as well as yields on short-term debt in India are likely to rise. The RBI in....