RBI reports financial conditions with surplus liquidity despite brief festival-driven deficits, supported by easing markets and marginally higher LAF absorption.

• RBI highlights October-November liquidity surplus overall, noting temporary October deficits caused by government cash balances and festival-driven currency demand pressures.
• Easing equity and corporate bond markets supported favourable financial conditions, improving sentiment and contributing to stable funding costs across segments.
• Average net absorption under LAF rose to Rs 1.3 lakh crore, aided by CRR cuts that strengthened system liquidity during October-November.