The banking system in India has maintained a liquidity surplus above ₹5 trillion for five straight days, with figures of ₹5.25 trillion on Monday and ₹5.13 trillion on Tuesday, according to data from the Reserve Bank of India (RBI). This surplus is largely driven by government expenditures of approximately ₹3.5 trillion and redemptions of government securities totaling ₹86,403 crore and ₹34,791 crore. The weighted average call money rate (WACR) was recorded at 5.08% on Wednesday, slightly up from 5.04% the previous day. Analysts suggest that the RBI may increase variable rate reverse repo (VRRR) operations to manage this surplus, especially since the WACR is currently below the repo rate of 5.25%. Additionally, the yield on the 10-year benchmark government bond eased by seven basis points to 6.87%, influenced by declining crude oil prices and US Treasury yields. The rupee remained stable at ₹93.38 per dollar, despite initial gains, due to strong dollar demand from importers.