Why is RBI borrowing money from banks now?

General
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RBI just said it will take ₹1 lakh crore from banks for 7 days. Not as a loan, but the other way around. Banks will park their extra money with RBI and get some interest.

This usually means there’s too much money lying around in the system. And too much money can mess with inflation or interest rates, so RBI is just trying to cool things down for now.

But where did all this extra money come from? Government spending? Bond redemptions? Or are banks just not lending enough?

Anyone else keeping track of this?

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The answer would be the RBI itself. It reduced the repo rate by 1% in a very short span, and it also did some market operations which injected durable liquidity into the market.

Now the RBI is just trying to stabilize it because they may have overshot their target. Now they are bringing it back down.

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