Keeping the weighted average call rate (WACR) aligned to the repo rate entails different levels of liquidity in deficit and surplus conditions, according to a RBI study.

Moreover, the extent of alignment is also contingent on the level of the lsurplus/ deficit.

The findings of an RBI study on “Optimal Level of Liquidity” suggest that surplus liquidity in the range of 0.6 to 1.1 per cent of NDTL (net demand and time liabilities) or deposits is likely to keep the WACR between 5 to 10 basis points (bps) below the repo rate (currently at 5.25 per cent).

So, in absolute terms, surplus liquidity should be in the ₹1,53,242 crore to ₹2,80,943 crore range, going by the NDTL of all scheduled banks as on March 30, 2026. This will keep the WACR between 5.20-5.15 per cent.

Liquidity deficit in the range of 0.4 to 0.7 per cent of NDTL is likely to keep the WACR above the repo rate between 5 to 10 bps.

In absolute terms, liquidity should be in the range of ₹1,02,161 crore to ₹1,78,782 crore. This will keep the WACR between 5.30-5.35 per cent.

The guiding principle of RBI’s liquidity management is to align WACR (the operating target of the monetary policy) with the policy repo rate. Liquidity mismatches could lead to deviation of the operating target from the policy rate, hampering monetary policy transmission.

Repo rate is the interest rate at which Banks’ borrows funds fron RBI to overcome short-term liquidity mismatches.

Call money market is a market for uncollateralized lending and borrowing of funds. This market is predominantly overnight and is open for participation only to scheduled commercial banks and the primary dealers.

The study noted that central banks actively manage liquidity conditions in the banking system to ensure that the operating target remains aligned to the policy rate, hovering within the interest rate corridor.

RBI officials noted that excessive liquidity surplus over a prolonged period runs the risk of driving short term interest rates to ultra-low levels, distorting risk perceptions and engendering asset price bubbles.

Moreover, persistently large surplus liquidity tends to lull market participants to a state of complacency in which they get accustomed to large liquidity.

In contrast, large deficit (shortage) in the banking system liquidity raises borrowing costs for banks, which constricts lending capacity, impedes monetary transmission and potentially undermines financial stability.

Therefore, it becomes essential to assess the optimal level of system liquidity in consonance with the monetary policy stance, the study said.

Published on April 12, 2026

First edition of Indian Navy’s biannual Commanders’ Conference 2026 will be held over three days from April 14 for comprehensive review of operational posture to protect national maritime interests, capability development and strategic alignment with national strategic security objectives.

This edition holds significant importance in the light of swift naval deployments to safeguard India’s Energy Security, amidst ongoing conflict in West Asia with convergence of Multi-National Forces (MNFs) in the Indian Ocean Region, the Ministry of Defence said in a statement on Sunday.

The conference will feature addresses by the Chief of Defence Staff and the Union Home Secretary, along with structured interactions with senior naval leadership. These engagements are aimed at strengthening interoperability and jointness, while offering a broader perspective on national stability, security architecture and a collaborative approach to emerging maritime challenges. The forum will also serve as a key platform for close engagement with national leadership, helping shape the strategic direction of naval planning.

During the conference, the Chief of the Naval Staff, along with operational commanders and senior leadership, will review and assess plans to address multi-dimensional challenges in the prevailing geo-strategic environment.

Deliberations will extend beyond security imperatives to focus on achieving operational effectiveness, enhancing blue-water capabilities, strengthening training and human resource management, promoting sustainable maintenance practices, and ensuring optimal deployment of uncrewed systems.

Key areas such as operational logistics and other enablers critical to combat readiness will also be discussed. In addition, the leadership will review progress on the implementation of the Navy’s Artificial Intelligence roadmap and the integration of data-driven technologies to enable seamless operations.

At a broader level, the Navy’s apex leadership will assess overall preparedness to deliver operational success as mandated by the government, in line with its four primary roles outlined in the Indian Maritime Doctrine.

This will include a focus on sustaining operations, expanding international cooperation, and advancing the Government of India’s vision of Mutual and Holistic Advancement for Security Across Regions (MAHASAGAR), alongside continued emphasis on indigenisation and innovation. The discussions are expected to further reinforce the Indian Navy’s position as a preferred security partner in the Indian Ocean Region and the wider Indo-Pacific.

The conference also assumes added significance in reaffirming the Navy’s operational doctrine, inter-services coordination, and technology-driven response mechanisms in the aftermath of Operation Sindoor.

Published on April 12, 2026

India’s coal import dropped 8.5 per cent to 16.55 million tonne in February on record stockpile of domestic coal and firmness in seaborne prices.

The country’s coal import is poised to maintain a weak trend this month with domestic miners making efforts to liquidate stockpiles.

“A record high stockpile of domestic coal and firm seaborne prices resulted in a drop in thermal coal imports. With the domestic miners endeavouring to liquidate stocks, the weak trend in imports is expected to continue during the current month,” mjunction MD & CEO Vinaya Varma said.

mjunction services is a B2B e-commerce platform and joint venture between Tata Steel and Steel Authority of India.

The import in February 2024-25 stood at 18.10 (MT), according to data compiled by mjunction services limited.

On a month-on-month basis, coal import in February was almost flat as against 16.64 MT in January 2026.

c. Coking coal imports stood at 3.92 MT, higher than 3.79 MT imported in February 2024-25.

During April-February 2025-26, non-coking coal import was at 137.60 MT, lower than 152.26 MT imported during the same period in 2024-25. Coking coal import was at 54.31 MT during April-February 2025-26, against 49.62 MT recorded for April-February 2024-25.

The drop in import comes amid a strategic push for self-reliance in coal production under the self-reliance initiative.

The all-India coal production in 2024-25 stood at 1,047.523 MT in comparison to 997.826 MT in 2023-24, registering a growth of about 4.98 per cent.

Coal inventories at thermal power plants remained comfortable around 55 million tonne as of Tuesday, sufficient for 24 days of uninterrupted power generation based on the average consumption over the last seven days, a senior coal ministry official said on Wednesday.

The stock levels indicate “absolute no deficit” on the power generation side, coal Joint Secretary Sanjeev Kumar Kassi had emphasised, allaying concerns over potential shortages amid rising summer demand.

“Coal stock at the power plants is around 55 million tonne as of yesterday (Tuesday), adequate for 24 days of uninterrupted power generation based on the average consumption of the last seven days. So we have absolutely no deficit at the power generation side,” he said at an inter-ministerial briefing on the developments in West Asia.

The domestic coal production is matching consumption levels, the official had said.

Published on April 12, 2026