That’s a four-year high. And it’s not good news. While it sounds like a win (more money = more growth, right?), too much cash floating around can actually push interest rates down, fuel inflation, and mess with bond markets. The root? Massive dollar inflows via FCNR(B) deposits; over $127 billion; which the RBI converted to rupees... and didn’t lock up with CRR/SLR. Now, the central bank’s scrambling to drain this surplus without shocking the system. They’re using overnight VRRR auctions, eyeing CRR hikes, and might even sell bonds via OMOs. Why care? Because if RBI fails to manage this, inflation could climb past 5.9%; and that hits your groceries, EMIs, and savings. The irony? Global banks are tightening. India’s drowning in cash. The real story? Liquidity isn’t just a number; it’s a ticking inflation bomb.