RBI injects ₹48,014 crore to ease tightening liquidity pressures
The Reserve Bank of India (RBI) has stepped in to ease liquidity pressures in the banking system. Through a seven-day variable rate repo (VRR) auction, it injected Rs 48,014 crore on March 16. This move comes as surplus liquidity in the system has dropped sharply to around Rs 75,483 crore.
The RBI's latest auction aimed to provide short-term funds to banks at competitive rates. The cut-off and weighted average rate for the funds stood at 5.26%. However, banks did not borrow the full amount on offer, leaving the infusion well below the notified Rs 1.50 lakh crore.
Liquidity conditions have been tightening in recent days, partly due to upcoming GST payments. Despite this, the central bank's ongoing support has kept overnight interest rates below the repo rate, reducing borrowing costs for banks.
Since January 2026, the RBI has added around Rs 3.50 lakh crore of durable liquidity through open market operations (OMO). These measures form part of its broader efforts to maintain stability in the financial system and ensure banks have adequate funds.
The latest injection of Rs 48,014 crore reflects the RBI's active role in managing liquidity. While the infusion was lower than expected, it still supports the banking sector amid tightening conditions. Further pressure is anticipated as GST payments approach, keeping the central bank's liquidity measures under close watch.
