On July 9, the Reserve Bank of India held a two-day reverse‑repo auction totaling ₹1 trillion ($11.7 bn), following a similar operation on July 4. This move aims to pull surplus liquidity out of the banking system, supporting the effectiveness of its policy repo rate after a 50 bps rate cut. Analysts suggest that these measured liquidity withdrawals are helping maintain the desired overnight interest corridor, enabling smoother transmission of monetary policy.