The Reserve Bank of India (RBI) on Friday injected Rs 25,101 crore transient liquidity in the banking system through a three-day variable rate repo (VRR) auction. The RBI injected the funds at cut-off and weighted average rates of 5.26 per cent, the central bank said in a release.
The liquidity injected was much lower than the notified amount of Rs 75,000 crore, despite a sharp drop in surplus liquidity in the banking system due to advance tax payments. Despite tight liquidity conditions in the banking system, the lower subscription in the VRR auction suggests an uneven distribution of liquidity, with banks parking a larger share of funds in the Standing Deposit Facility.
Currently, liquidity in the banking system is estimated to be in surplus of around Rs 16,875.36 crore as of March 19. On March 17, the central bank injected Rs 48,014 crore liquidity into the banking system via a seven-day VRR.
Prior to this, the RBI has infused Rs 3.50 lakh crore of durable liquidity into the banking system through open market purchase (OMO) of government securities since January 2026.
RBI board assesses economic scenario amid West Asia crisis
The RBI central board on Friday assessed the emerging global and domestic economic scenario, including evolving geopolitical developments and their impact on financial markets, along with associated challenges.
The 622nd meeting of the Central Board of Directors of Reserve Bank of India was held today in Patna under the Chairmanship of Governor Sanjay Malhotra, a release said.
“The Board approved the Bank's budget for the accounting year 2026-27 and also the Bank's Medium Term Strategy Framework (Utkarsh 3.0) for the period 2026-29,” it said.
Deputy Governors T Rabi Sankar, Swaminathan J, Poonam Gupta, and Shirish Chandra Murmu participated in the meeting.
Other directors of the Central Board, Anuradha Thakur, Secretary, Department of Economic Affairs; Revathy Iyer, Sachin Chaturvedi and Ravindra H Dholakia, also attended the meeting.
Core sectors growth slows down to 2.3 pc in Feb
New Delhi: Production growth in eight core infrastructure sectors slowed down to 2.3 per cent in February from 3.4 per cent in the same month last year, according to government data. Production of crude oil, natural gas, and refinery products declined during the month. During April-February, the cumulative production growth in infrastructure sectors was 2.9 per cent, compared with 4.4 per cent in the same period of the last financial year.
Also read: RBI must revisit investment criteria, says ex-dy chief Rao
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