Challenges of Surplus Liquidity – UPSC GS3
What are the reasons behind surplus liquidity in the system? To stimulate growth, various tools were used by RBI during pre-Covid and Post Covid phase to push excess liquidity into the system. These tools are: LTRO (long term repo operations) OMO (open market operations) TLTRO (targeted long-term repo operations) GSAP (government securities acquisition programme) RBI’s low repo rate A …