RBI injects Rs 84,582 cr in banking system in two VRR auctions

Mumbai: The Reserve Bank of India (RBI) on Monday injected Rs 84,582 crore of transient liquidity into the banking system via two variable rate repo (VRR) auctions.

The central bank injected Rs 50,001 crore through first three-day VRR auction early in the day at cut-off rate of 5.34 per cent and weighted average rate of 5.44 per cent, the central bank said in a release.

The Reserve Bank injected another Rs 34,581 crore at 5.26 per cent cut-off and 5.30 per cent weighted average rate at an auction later during the day.

In the first auction, the central bank received bids of Rs 57,287 crore as against the notified amount of Rs 50,000 crore and accepted bids worth Rs 50,001 crore. However, for the second auction, bids received were lower than the notified amount.

Currently, liquidity in the banking system is estimated to be in surplus of about Rs 1.27 lakh crore as on March 27.

In the last few days, the central bank infused transient liquidity of Rs 2,73,530 crore in to the banking system through VRR auctions of various tenures.