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Sunday, May 22, 2022

The RBI is looking to use the new liquidity adjustment framework to manage liquidity in the system due to the mega LIC initial public offer (IPO). Over the next few weeks, banks could see a surge in deposits from potential subscribers, which would be followed by Rs 65,000-70,000 crore cash going out of the system. Adding to this volatility will be some dollar flows from overseas.

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