RBI releases report on review of Liquidity Management Framework

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RBI report Liquidity Management Framework Internal Working Group RBI review RBI public comments

Press Release: 2025-2026/846, Dated 06.08.2025

Release of Internal Working Group Report


The Reserve Bank of India (RBI) has released the report prepared by its Internal Working Group constituted to review the Liquidity Management Framework (LMF). This framework has been in operation since February 2020, guiding the RBI’s approach to managing liquidity in the banking system.

Purpose of the Review


The review aims to assess the effectiveness of the existing LMF in maintaining monetary stability, ensuring smooth credit flow, and responding to evolving market conditions. The Internal Working Group has studied the framework’s operational aspects and suggested improvements in line with current economic needs.

Public Availability of the Report


The complete report is now accessible on the RBI’s official website. It contains the Group’s analysis, observations, and recommendations for strengthening liquidity management practices. By making the report public, the RBI seeks to maintain transparency and encourage informed discussions.

Invitation for Comments


The RBI has invited feedback from stakeholders, industry participants, and the general public. Comments and suggestions can be submitted via email until August 29, 2025. The inputs received will be considered before finalising any changes to the Liquidity Management Framework.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied