The Reserve Bank of India conducted two variable rate repo (VRR) auctions on Monday, injecting ₹84,582 crore of transient liquidity into the banking system. According to reports from The Hindu BusinessLine, the central bank injected ₹50,001 crore through the first three-day VRR auction at a cut-off rate of 5.34 per cent and weighted average rate of 5.44 per cent. The second auction later in the day added another ₹34,581 crore at a cut-off rate of 5.26 per cent and weighted average rate of 5.30 per cent.
The first auction demonstrated robust market participation with the RBI receiving bids of ₹57,287 crore against the notified amount of ₹50,000 crore. As reported by The Hindu BusinessLine, the central bank accepted bids worth ₹50,001 crore in the first round. However, for the second auction, bids received were lower than the notified amount, indicating varying market demand across different tenures.
Currently, liquidity in the banking system is estimated to be in surplus of about ₹1.27 lakh crore as on March 27, according to the RBI release reported by The Hindu BusinessLine. This surplus liquidity position provides the central bank with flexibility to manage market conditions and maintain adequate liquidity levels in the financial system.
Over recent days, the RBI has demonstrated active liquidity management through multiple channels. According to reports from The Hindu BusinessLine, the central bank has infused ₹2.73 lakh crore in transient liquidity through VRR auctions of various tenures in recent days. Additionally, the RBI has infused ₹3.50 lakh crore of durable liquidity into the banking system through open market purchase (OMO) of government securities since January 2026. As reported by The Hindu BusinessLine, these measures help ensure banks have sufficient cash on hand to support businesses and regular customers, preventing money crunches and maintaining smooth payment systems.
