• Intekhab Nadeem Khan
• Dr. Pradeep Kumar Varshney

In today's world, banks and other financial institutions are the economic backbone of a nation. Every individual from each strata of the society is dependent on banks and financial institutions for their money related matters. All banks and other financial institutions must function smoothly to maintain the needs and demands of their customers. There are many factors, which cause a blow to this economic backbone. One such factor is liquidity risk. Every financial institution is prone to liquidity risk and nowadays it has emerged as one of the causative factor to bank collapse. The success of bank depends on how well it estimates its liquidity needs. Efficient liquidity management is critical to the operation of banks. For any bank, liquidity is a very crucial element. Each bank needs to maintain a certain level of liquidity. It should be neither excessive nor inadequate. Excessive liquidity means accumulation of ideal funds, which may lead to lower profitability, increase speculation, unjustified extension, extension of liberal credit terms, liberal dividend policy etc; whereas inadequate liquidity results in interruption of bank operations. A proper balance between these two extreme situations should be maintained for efficient operation of banks through skillful liquidity risk management strategies. The need of efficient liquidity management has become greater in recent years.

Liquidity, Liquidity Risk, Uncertainty, Management Strategies, Financial Obligations.

"Liquidity Risk Management Strategies to Combat Liquidity Risk in Commercial Banks.", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.10, Issue 1, page no.e252-e258, January-2023, Available :http://www.jetir.org/papers/JETIR2301441.pdf

"Liquidity Risk Management Strategies to Combat Liquidity Risk in Commercial Banks.", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.10, Issue 1, page no. ppe252-e258, January-2023, Available at : http://www.jetir.org/papers/JETIR2301441.pdf