India’s liquidity surplus hides deeper funding stress in banking system | Economy & Policy Analysis
As of 6 April 2026, the banking system was in a liquidity surplus of about Rs 3.8 trillion. This is a reasonably comfortable headline number, equivalent to roughly 1.5% of banks’ net demand and time liabilities (NDTL).  Yet, this headline surplus masks a much more uneasy underlying reality. Despite sustained and historically…