RBI to inject Rs 75,000 crore in banking system through VRR auction
Amid the current and evolving liquidity conditions of the banking system, the Reserve Bank of India (RBI) is all set to inject Rs 75,000 crore worth of liquidity in the banking system. It will conduct a three-day variable rate repo (VRR) auction on March 20.
Currently, the banking system is estimated to have liquidity surplus of around Rs 81,963.69 crore. Besides, on March 17, the RBI injected Rs 48,014 crore of transient liquidity into the banking system through a seven-day VRR auction
Before this, RBI had infused Rs 3.50 lakh crore durable liquidity into the banking system through open market purchase (OMO) of government securities. The RBI has been infusing heavy liquidity into the banking system in the last few months in order to keep overnight rates under check.
