Reserve Bank of India (RBI) injects ₹1,41,171 crore transient liquidity via VRR auction

Key facts

• The Reserve Bank of India (RBI) injected ₹1,41,171 crore transient liquidity into the banking system through a seven-day variable rate repo (VRR) auction at a cut-off and weighted average rate of 5.26 per cent.
• The infusion followed a banking system liquidity deficit of ₹19,971.89 crore on June 22, compared to a surplus of ₹30,685.11 crore on June 21.
• The tightening of liquidity was attributed to outflows resulting from goods and services tax (GST) and advance tax payments.
• The weighted average call money rate traded at 5.43 per cent, which was 0.18 per cent above the RBI repo rate, while tri-party repo (TREPS) traded 0.05-0.07 per cent over the repo rate.
• The RBI has infused a total of approximately ₹2.43 lakh crore through VRR auctions of different tenures over the past few days to stabilise overnight money market rates.