Next week, the RBI will meet with bankers to talk about the new liquidity model.

According to persons familiar with the situation, the central bank of India is scheduled to meet with lenders next week to talk about modifying its framework for managing liquidity in order to better anchor borrowing costs to the policy rate.

According to persons who asked not to be named in order to discuss private affairs, the Reserve Bank of India is set to meet with bank economists on April 3 to get input on suggested adjustments that include taking shorter-maturity buyback operations into consideration. A 14-day cash window is presently the central bank's primary weapon.

According to the persons, a revamped liquidity regime may be announced in the upcoming weeks after being evaluated by an internal central bank panel. The central bank has been lowering interest rates and pumping a lot of money into the financial system in an effort to spur economic growth, which coincides with the talks on the liquidity framework.

According to the persons, the central bank might think about utilizing repurchase operations with a range of maturities, including shorter-term ones. They stated that employing overnight or other short-term variable rate repurchase operations proactively is an option. An email asking for a comment on the issue was not immediately answered by the central bank.