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Live News CENTRAL_BANK ARTICLE M impact

Indian banks propose FX sell/buy swaps to drain excess rupee liquidity

Indian lenders proposed using foreign exchange sell/buy swaps to gradually withdraw surplus rupee liquidity from the banking system, discussed at a meeting with the central bank on Thursday, sources told Reuters.

By Dharamraj DhutiaIndian lenders proposed using foreign exchange sell/buy swaps to gradually withdraw excess rupee liquidity from the banking system at a meeting with the central bank on Thursday, three sources familiar with the discussion told Reuters.Banking system liquidity surged to a record 9…