Which of the following monetary policy actions would most directly absorb excess liquidity parked by commercial banks with the central bank while discouraging inflationary pressure?

What happens when the Reserve Bank of India (RBI) increases the 'Repo Rate'?

What is the direct impact on the banking system when the Reserve Bank of India increases the Cash Reserve Ratio (CRR)?

Consider the following statements with reference to the monetary policy operations of the Reserve Bank of India (RBI): I. It can absorb surplus liquidity from the banking system through reverse repo operations. II. Under the Liquidity Adjustment Facility framework, the Standing Deposit Facility (SDF) rate operates as the upper bound of the policy corridor. III. Under India's inflation-targeting framework, the upper tolerance level for headline inflation has been fixed at 4 per cent. Which of the statements given above is/are correct?