Dharamraj Dhutia

The Indian central bank absorbed more than 6 trillion rupees ($63.53 billion) through cash withdrawal operations on Monday, a day after ​banking liquidity surged to a record high.

India's foreign exchange reserves climbed to another record high of $740.80 billion ​in the week to August 28, central bank ‌data showed on Friday, boosted by heavy inflows from special schemes to attract dollar inflows into the country.

India's banking system liquidity surplus has jumped to a record high, ​with rupee liquidity surpassing levels witnessed ‌in the aftermath of Covid-19, as lenders collected more dollars than expected under the central bank's deposit scheme.

The Reserve Bank of India's special dollar deposit scheme drew a larger-than-expected $127.23 billion, leaving the central bank having to deal with a problem of plenty.

India's central bank said on Wednesday it had attracted $136.38 billion in inflows under its ​forex swap facility as of August 31, bolstering its ability to shield ‌the rupee from shocks, with most of the funds coming through a diaspora-focused dollar deposit scheme.

India's Capri Global Capital has initiated the procedure to borrow in dollars in what would be its first ever foreign currency ​debt issuance, two months after it appointed lead managers, two merchant ‌bankers said on Tuesday.

The Indian rupee ended higher on Friday, rounding out a weekly gain, boosted by a spurt ​of dollar liquidity ahead of the closing of a special deposit ‌window.

India's foreign exchange reserves climbed to a record high of $729.33 billion in the week to August 21, central bank ​data showed on Friday, boosted by persistent inflows from regulatory measures ‌to boost the country's balance of payments.

Indian government bond traders are expecting the central bank to absorb a jump in surplus liquidity in the banking system using longer-lasting tools as it ​prepares to tighten monetary policy amid rising inflation risks.

Union Bank of India has accepted bids worth $600 million for a public sale of U.S. dollar-denominated bonds through ​its Dubai branch, its first such issuance in more ‌than 12 years, two merchant bankers said on Tuesday.