Mumbai: Higher-than-expected inflows through the FCNR(B) window will heighten liquidity issues and lead the Reserve Bank to deploy more tools to absorb the excess money, economists said on Thursday.
In comments that come a day after the RBI announced that banks have mopped up USD 127.23 billion of deposits from the diaspora at the close of the concessional swap facility, domestic rating agency Careedge said the new flows "complicate" the liquidity management for the central bank, especially with the banking system already saddled with excess liquidity at a four-year high.
