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RBI Infuses Rs 1.41 Lakh Crore Into Banking System Through Seven Day VRR Auction
The Reserve Bank of India injected Rs 1.41 lakh crore of short-term liquidity into the banking system through a seven-day Variable Rate Repo auction. The move aims to address temporary liquidity requirements in the banking system, with funds infused at a weighted average rate of 5.26 percent.
By Finblage Editorial Desk
12:45 pm
23 June 2026
The Reserve Bank of India (RBI) injected Rs 1,41,171 crore of transient liquidity into the banking system through a seven-day Variable Rate Repo (VRR) auction on June 23. The liquidity infusion was undertaken to meet short-term funding requirements and ensure adequate liquidity conditions across the financial system.
According to the RBI, the funds were injected at a cut-off rate and weighted average rate of 5.26 percent. Under the VRR mechanism, banks can borrow funds from the central bank by pledging government securities, helping manage temporary liquidity mismatches.
The auction comes amid the RBI's ongoing efforts to maintain orderly liquidity conditions and ensure the smooth transmission of monetary policy. Variable Rate Repo operations are a key liquidity management tool used by the central bank to inject short-term funds into the banking system when required.
A comfortable liquidity environment is important for supporting credit growth, facilitating interbank market operations, and maintaining stability in money market rates. The latest infusion is expected to provide banks with additional funds to meet operational and lending requirements over the coming week.
The RBI continues to actively monitor liquidity conditions and deploys various instruments, including repo auctions, reverse repos, and open market operations, to maintain financial system stability.
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