The Reserve Bank of India (RBI) has seen a decrease in demand for its seven-day cash infusion operation, despite a narrowing in liquidity surplus. The bank infused 480 billion rupees ($5.2 billion) against an offer of 1.50 trillion rupees via the variable repo rate operation, a process where banks compete for different rates. Despite this, the banking system's liquidity surplus was at a seven-week low. The weak demand reflects a preference for short-duration borrowing, indicating a preference towards flexibility, which indicates term funding is less attractive. The need for flexible options is seen as an indication that the RBI should experiment with 7-day or 14-day repos with a prepayment option.