People familiar with the matter revealed that the Bank of India will hold a meeting with some banks on Thursday to discuss liquidity management. Earlier, India introduced a number of policies aimed at expanding capital inflows, bringing in more capital than expected. People familiar with the matter said that due to capital inflows, excess liquidity in the banking system has risen sharply, making overnight borrowing costs significantly lower than the Reserve Bank of India's policy interest rate.

People familiar with the matter revealed that the Bank of India will hold a meeting with some banks on Thursday to discuss liquidity management. Earlier, India introduced a number of policies aimed at expanding capital inflows, bringing in more capital than expected. People familiar with the matter said that due to capital inflows, excess liquidity in the banking system has risen sharply, making overnight borrowing costs significantly lower than the Reserve Bank of India's policy interest rate.