India's Bank Cash Surplus Decreases Due to RBI's Tight Liquidity

• The Reserve Bank of India has capped liquidity support at 1.5 trillion rupees.
• The central bank has refrained from offering additional funds when demand exceeds the available amount.
• This measure is aimed at curbing bets against the Indian rupee.
• A record cash surplus at Indian banks is diminishing quickly.
• The central bank's actions are causing a significant reduction in bank liquidity.