RBI stresses prudent liquidity planning as loan applications rise during festivals

Rohit Jain emphasized that the surge in loan demand during the festive period will test banks’ ability to keep liquidity adequate. He explained that the RBI has been consulting with banks on best practices for liquidity management, focusing on maintaining a balance between meeting borrower needs and preserving financial stability. The decision on how to deploy funds will be a commercial judgment of each bank, guided by its asset‑liability composition and projected cash requirements.