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RBI injects Rs 40,000 crore of liquidity into banking system
RBI’s fund injection via two auctions comes a day after banking system liquidity gap breaches Rs 2 lakh crore threshold.
RBI’s fund injection via two auctions comes a day after banking system liquidity gap breaches Rs 2 lakh crore threshold.
The Reserve Bank of India (RBI) has pumped in over Rs 40,000 crore into the banking system under two separate operations on Thursday. This is a day after the banking system liquidity gap breached the Rs 2 lakh crore threshold.
While the RBI used Rs 30,760 crore worth of bids from overnight variable rate repo (VRR) auction, Rs 9,892 crore came from the government securities buyback window.
The central bank accepted 61% of the notified amount in the case of VRR. In the buyback operation, it accepted just 33% and rejected bids made at higher rates.
Separately, the RBI announced the next daily VRR auction for Rs 50,000 crore on Friday. This transaction will be reversed on Monday.
As per RBI data, banking system liquidity faced deficit of Rs 2.2 lakh crore as of Wednesday. As of January, the average deficit was Rs 1.5 lakh crore.
