The country’s central bank, the Reserve Bank of India, has made major efforts for two consecutive days to overcome the cash shortage in the banking sector. RBI has infused liquidity of Rs 84,582 crore into the banking sector through two Variable Rate Repo (VRR) auctions. Experts consider this to be very important. Banks are expected to get a big boost from this. Let us also tell you that after all, RBI has tried to remove the cash crunch in the banking sector through auction.
50 thousand crores in the first auction
The Reserve Bank of India (RBI) on Monday injected temporary liquidity of Rs 84,582 crore into the banking system through two Variable Rate Repo (VRR) auctions. The central bank said in a release that it infused Rs 50,001 crore through the first three-day VRR auction at the beginning of the day, with a cut-off rate of 5.34 per cent and a weighted average rate of 5.44 per cent. RBI put in another Rs 34,581 crore in another auction held later in the day at a cut-off rate of 5.26 percent and a weighted average rate of 5.30 percent.
How much surplus is expected?
In the first auction, the central bank received bids worth Rs 57,287 crore against the fixed amount of Rs 50,000 crore and accepted bids worth Rs 50,001 crore. However, in the second auction, the bids received were less than the stipulated amount. At present, till March 27, liquidity in the banking system is estimated to be in surplus of about Rs 1.27 lakh crore. Over the past few days, the central bank has injected temporary liquidity of Rs 2,73,530 crore into the banking system through VRR auctions of different tenures. Earlier, RBI has injected permanent liquidity of Rs 3.50 lakh crore into the banking system through open market purchase (OMO) of government securities from January 2026.