RBI’s internal group suggests using the call money rate as a policy target and enhancing variable rate liquidity operations for stability.

• Group recommends aligning the interbank call money rate with the policy rate through variable rate liquidity tools of different tenors.
• The current liquidity framework, in place since February 2020, is under review; the final report is to be released soon.
• RBI Governor Sanjay Malhotra shared the update, signaling potential operational changes in monetary policy strategy.