
RBI Governor Flags Liquidity Concerns in Money Market
Reserve Bank of India (RBI) Governor Sanjay Malhotra has raised concerns about dwindling liquidity in India’s call money market, warning that it could pose challenges for monetary policy transmission. Malhotra highlighted asymmetries between different money market rates, including the call money rate, market repo rate, and TREPS (tri-party repo dealing system) rate. He urged banks…