The Reserve Bank of India (RBI) today injected ₹79,256 crore into the banking system through an overnight variable rate repo (VRR) auction to ease liquidity conditions.
The central bank stated that the funds were injected at a cut-off and weighted average rate of 5.26 percent. However, the injected liquidity was lower than the notified amount of ₹1 lakh crore, despite tight liquidity conditions due to advance tax outflows.
Liquidity in the banking system is currently estimated to be in deficit of approximately ₹65,395 crore as of March 23rd.
Earlier, the RBI had injected over ₹25,000 crore through a three-day auction on March 20th, and over ₹48,000 crore via a seven-day auction on March 17th.
Since January this year, the RBI has also injected around ₹3.5 lakh crore of durable liquidity through open market operations (OMO).
This move aims to maintain adequate liquidity and ensure stability in the financial system.
