Setty addresses USD 136.4 billion liquidity surge at Global Fintech Fest
GS3Economy · S&T · Environment · Security· Monetary policy, RBI & banking· Prelims·
Liquidity management and FCNR(B) deposits: a key GS3 topic regarding monetary stability.
Why in news
Setty addressed a USD 136.4 billion liquidity surge at the Global Fintech Fest 2026 following the closure of the RBI's concessional swap window.
Background
The RBI's concessional swap window attracted USD 136.4 billion by August 31. Banks collected USD 127.2 billion in FCNR(B) deposits as part of this liquidity movement.
Facts for Prelims
- FactUSD 136.4 billion: Total liquidity attracted by the RBI's concessional swap window by August 31.
- FactUSD 127.2 billion: Amount collected by banks in FCNR(B) deposits.
- BodyReserve Bank of India (RBI): The central bank responsible for the concessional swap window.
- S&TAsset tokenisation: A highlighted trend in the fintech sector for fund deployment.
Prelims practice question
With reference to the liquidity movement discussed at the Global Fintech Fest, consider the following statements:
- The RBI's concessional swap window attracted USD 136.4 billion by August 31.
- Banks collected USD 150 billion in FCNR(B) deposits as part of the liquidity movement.
- Asset tokenisation is a highlighted trend in the fintech sector for fund deployment.
Which of the statements given above is/are correct?
- (a)1 only
- (b)2 only
- (c)1 and 3 only
- (d)1, 2 and 3
Show answer
Answer: (c) 1 and 3 only — Statements 1 and 3 are correct. Statement 2 is incorrect: Banks collected USD 127.2 billion in FCNR(B) deposits.
For Mains
Q. Discuss the implications of sudden liquidity surges and the shift toward asset tokenisation on the stability of the Indian banking system.
Dimensions to cover in your answer
- Liquidity management: Time lag of three to four months for fund deployment affecting immediate monetary policy
- Digital transformation: Shift toward asset tokenisation impacting traditional collateral structures
- Deposit volatility: Risks associated with high-volume FCNR(B) inflows and subsequent outflows
Keywords: liquidity management · monetary policy · asset tokenisation · FCNR(B) deposits · fintech
More Economy notes
- Sebi Study: Individual Traders' Net Losses Plunge to ₹91,685 Crore, But 88% Still Lose · 18 September 2026
- Kore Digital barred from raising funds; financial statements misstated by ₹541.3 crore · 18 September 2026
- Modi's reforms boost India's economy to over $4 trillion, but job creation lags · 18 September 2026
- At the SEMICON India 2026 conference in Delhi, Prime Minister Narendra Modi · 17 September 2026
- Cab aggregators hit: Tipping options scrapped, Rapido fined ₹10 lakh · 17 September 2026
- Maharashtra FDA Chief Exposes 2800% Profit Hike on IV Sets, Demands Action · 17 September 2026
Something wrong, or something missing?
Spotted a mistake in a note, or want a topic, format or PDF that would help your preparation? Write to us. We read every mail and fix errors fast.
Report a mistake →Ask for something →thesatyadheesh@gmail.com
This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.