The Reserve Bank of India is closely monitoring liquidity to decide whether it needs to take fresh measures to absorb excess funds from the banking system, the central bank's deputy governor said on Saturday.
"We are constantly looking at everything," RBI Deputy Governor Rakesh Mohan told reporters when asked if authorities were considering special 90-day repos to mop up surplus funds.
"We are constantly monitoring the liquidity situation and as part of liquidity management we will do whatever it takes."
The central bank absorbed nearly Rs 10,900 crore (Rs 109 billion) on Friday through open market sales.
Liquidity has received a boost in recent months due to strong forex inflows which have pushed reserves to a record high of over $70 billion.
The excess funds have driven government bond yields to life lows and fuelled hopes of a cut in the short-term repo rate from 5.5 per cent.
