The Reserve Bank of India’s phased 100-basis-point cut in the cash reserve ratio (CRR), intended to release roughly ₹2.5 trillion into the banking system, has so far yielded only about half the intended liquidity. Analysts attribute the under-performance to concurrent FX-market interventions and maturity drain of forward contracts. The banking system, instead of moving into surplus, briefly recorded a deficit after the operations began. With yields remaining elevated and liquidity tight, the RBI may need to launch open market operations (OMOs) or other long-term tools to stabilise funding conditions.