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