Banking system surplus liquidity hits 4-month high of ₹5 lakh cr

Surplus liquidity in India's banking system surged to nearly ₹5.05 lakh crore on August 30, its highest level since April 15, 2026, when it stood at ₹5.22 lakh crore. The rise came amid heavy month-end government spending and foreign currency deposits. Surplus liquidity refers to excess cash and funds held by banks beyond daily operational needs and mandatory reserve requirements.