The present paper empirically analyses the recent trends in real growth rates of various components of liquidity aggregates in India over the period December 2019 to April 2021. The results of breakpoint unit root test involving the application of innovational outlier model and minimisation of Dicky-Fuller t-statistic clearly establish a “structural break” in the real growth rates of both M3 and L2 thereby bearing testimony to the adverse liquidity conditions prevailing in the Indian economy. The future course of Indian economy crucially hinges on how well the monetary authority handles this formidable challenge.