RBI infuses Rs 55,837 crore transient liquidity into banking system via 3-day VRR auction
The funds were infused at a cut-off and weighted average rate of 5.26 per cent
In an effort to stabilize the banking sector, the Reserve Bank of India (RBI) has infused Rs 55,837 crore transient liquidity into the banking system through three-day variable rate repo (VRR) auction. The funds were infused at a cut-off and weighted average rate of 5.26 per cent.
The liquidity injected was much lower than the notified amount of Rs 1 lakh crore, despite a decline in surplus liquidity in the banking system due to advance tax payments. Currently, liquidity in the banking system is estimated to be in surplus of about Rs 26,196.36 crore as on March 23, 2026.
Recently, the RBI infused transient liquidity of Rs 2.08 lakh crore into the banking system through VRR auctions of various tenures. Before this, the RBI infused Rs 3.50 lakh crore of durable liquidity into the banking system through open market purchase (OMO) of government securities since January 2026.
