RBI Boosts Banking Liquidity with Massive Repo Auctions

The Reserve Bank of India (RBI) injected Rs 84,582 crore into the banking system via two variable rate repo auctions. The first auction of Rs 50,001 crore and the second of Rs 34,581 crore aim to maintain liquidity, with current banking surplus at Rs 1.27 lakh crore as of March 27.

The Reserve Bank of India (RBI) has taken decisive steps to maintain liquidity in the banking sector, injecting Rs 84,582 crore through two variable rate repo (VRR) auctions on Monday.

The central bank's first auction of the day saw Rs 50,001 crore pumped into the system, with a cut-off rate of 5.34% and weighted average rate of 5.44%. Despite bids of Rs 57,287 crore against a notified amount of Rs 50,000 crore, the RBI accepted Rs 50,001 crore in bids.

Later, the RBI injected another Rs 34,581 crore at a cut-off rate of 5.26% and weighted average rate of 5.30%. This move reflects the RBI's ongoing efforts to address liquidity needs, showcased by its previous Rs 2,73,530 crore infusion in recent days, maintaining a surplus of approximately Rs 1.27 lakh crore.