RBI Injects ₹55,837 Crore via VRR Auction to Support Banking System Liquidity
Mumbai, March 24: The Reserve Bank of India (RBI) infused ₹55,837 crore into the banking system on Tuesday through a three-day variable rate repo (VRR) auction, as part of its ongoing liquidity management operations.VRR Auction Details
According to the central bank, the funds were injected at both the cut-off rate and the weighted average rate of 5.26 per cent. The liquidity infusion came in lower than the notified amount of ₹1 lakh crore, even as surplus liquidity in the system declined sharply due to advance tax outflows.Liquidity Conditions in the Banking System
Despite recent pressures, liquidity in the banking system remained in surplus territory, estimated at approximately ₹26,196.36 crore as of March 23. The reduced participation in the auction reflects the evolving liquidity dynamics amid tax-related withdrawals.RBI’s Ongoing Liquidity Measures
The RBI has been actively managing liquidity through multiple interventions in recent days. It has injected a total of ₹2,08,208 crore via short-term VRR auctions across different maturities.In addition, since January 2026, the central bank has infused ₹3.50 lakh crore of durable liquidity through open market purchases (OMPs) of government securities.
Focus on Liquidity Stability
The latest VRR auction highlights the RBI’s calibrated approach to ensuring adequate liquidity in the financial system while responding to temporary fluctuations caused by tax payments and other factors.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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