India's banking system liquidity hit a record Rs 10.3 trillion on September 3 after large foreign‑currency inflows from the RBI's swap facility, pushing overnight rates below the standing deposit facility. The RBI conducted VRRR auctions absorbing Rs 6.02 trillion and announced a 30‑day operation. The swap mobilised USD 127.2 billion and lifted reserves, heightening concerns about future inflation and monetary policy adjustments.
