Mumbai: The Reserve Bank of India (RBI) on Tuesday injected Rs 1,41,171 crore transient liquidity into the banking system through a seven-day variable rate repo (VRR) auction.
The funds were infused at a cut-off and weighted average rate of 5.26 per cent, according to the RBI’s release.
This was done after the liquidity in the banking system turned into a deficit of Rs 19,971.89 crore as on June 22, from a surplus of Rs 30,685.11 crore as on June 21.
The move follows a review of prevailing and evolving liquidity conditions in the banking system. RBI said the auction will be conducted under the Liquidity Adjustment Facility (LAF) and will adhere to the operational guidelines issued earlier in January 2022.
