As expected, the Reserve Bank of India (RBI) has retained its dovish stance on liquidity. By stating it “will continue to be proactive in liquidity management,” the central bank signaled a soft policy approach rather than a hard one. Currently, liquidity is so abundant that overnight rates are trading well below the repo rate. Interestingly, the RBI also expressed concern that commercial paper (CP) and certificate of deposit (CD) rates remain elevated, highlighting pockets of tightness even amid surplus liquidity.