Liquid funds, commonly used by corporates to park short-term cash, have experienced significant outflows due to the Reserve Bank of India’s measures to tighten liquidity conditions and cyclical outflows at the end of the half-year. Data from the Association of Mutual Funds in India (AMFI) shows that liquid funds witnessed net outflows of ₹74,176 crore in September, the highest among debt oriented schemes. Bond yields have risen sharply since August as the RBI has drained excess liquidity from the banking system.