RBI's Massive Liquidity Boost: A Strategic Repo Move
The Reserve Bank of India (RBI) will conduct an overnight variable rate repo auction of Rs 1 lakh crore on March 23. This move is prompted by the excess liquidity in the banking system. The RBI recently infused large amounts of liquidity through various VRR auctions to stabilize financial conditions.
- Country:
- India
The Reserve Bank of India (RBI) has announced an overnight variable rate repo (VRR) auction of Rs 1 lakh crore slated for March 23. This strategic financial maneuver is in response to the current and evolving liquidity conditions within the banking sector.
Scheduled to occur between 9:30 am and 10:00 am on the specified date, with the funds set for reversal on March 24, the auction underscores RBI's proactive approach to managing surplus liquidity, which currently stands at approximately Rs 16,875.36 crore.
Recent measures include a three-day VRR auction infusing Rs 25,101 crore earlier today, and a significant Rs 48,014 crore seven-day VRR conducted on March 17. Since January 2026, the RBI has injected Rs 3.50 lakh crore of long-term liquidity through open market operations.
(With inputs from agencies.)
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