India Central Bank to Sell Bonds and Tighten Reserves
The Reserve Bank of India announced plans to sell 250 billion rupees of bonds through open market operations. It also tightened daily maintenance of the cash reserve ratio to drain surplus rupee liquidity from the banking system.
India's central bank will sell 250 billion rupees ($2.58B) of bonds on Tuesday to drain excess banking cash. The Reserve Bank of India also raised daily cash reserve requirements to 99% from October 16. The tightening follows a recent rate hike as policymakers move to curb systemic liquidity surpluses.
