Mumbai, March 20 The Reserve Bank of India (RBI) injected ₹25,101 crore of temporary liquidity into the banking system on Friday through a three-day variable rate repo (VRR) auction.
The RBI injected the funds at cut-off and weighted average rates of 5.26 percent, the central bank said in a release.
The liquidity injected was significantly lower than the notified amount of ₹75,000 crore, despite a sharp drop in surplus liquidity in the banking system due to advance tax payments.
Despite tight liquidity conditions in the banking system, the lower subscription in the VRR auction suggests an uneven distribution of liquidity, with banks parking a larger share of funds in the Standing Deposit Facility.
Currently, liquidity in the banking system is estimated to be in surplus of around ₹16,875.36 crore as of March 19.
On March 17, the central bank injected ₹48,014 crore of liquidity into the banking system via a seven-day VRR.
Prior to this, the RBI has infused ₹3.50 lakh crore of durable liquidity into the banking system through open market purchase (OMO) of government securities since January 2026.