These balances have been estimated between Rs4-6 billion, depending on circumstances. Therefore, the analysis of rupee excess reserves should exclude these balances. And currently, we estimate that the true rupee excess liquidity in the system would be around Rs2 billion, which is more or less manageable. In the coming weeks, we foresee rupee excess reserves to go down.
The Bank has recently been focusing on the 91-day Bill yield as its short-term operating target. The 91-day Bill yield, which is market-determined, can be viewed as an appropriate measure of the efficiency of the Bank’s operations.