RBI injects Rs 84,582 crore into banking system

Mumbai: The Reserve Bank of India (RBI) on Monday injected Rs 84,582 crore into the banking system to enhance liquidity through two variable rate repo (VRR) auctions.

The central bank injected Rs 50,001 crore through the first three-day VRR auction early in the day at a cut-off rate of 5.34 per cent and weighted average rate of 5.44 per cent, according to an RBI statement.

The RBI injected another Rs 34,581 crore at 5.26 per cent cut-off and 5.30 per cent weighted average rate at an auction later during the day.

In the first auction, the central bank received bids of Rs 57,287 crore as against the notified amount of Rs 50,000 crore and accepted bids worth Rs 50,001 crore. However, for the second auction, the bids received were lower than the notified amount.

Currently, liquidity in the banking system is estimated to be in surplus of about Rs 1.27 lakh crore as on March 27.

In the last few days, the central bank infused transient liquidity of Rs 2,73,530 crore into the banking system through VRR auctions of various tenures.

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.

Meanwhile, the Centre announced on Friday that, in consultation with the RBI, it has decided to borrow Rs 8.20 lakh crore during the first half (H1) of the financial year 2026-27

Gross market borrowings in the Budget estimate (BE) 2026-27 were fixed at Rs 17.20 lakh crore. Since the presentation of the Budget, switches of G-Sec were conducted, reducing gross market borrowing to Rs 16.09 lakh crore. As much as Rs 8.20 lakh crore, which works out to 51 per cent of the total amount, is planned to be borrowed in the first half (April-September) of the financial year 2026-27. The borrowing will be done through the issuance of dated securities, including Rs 15,000 crore of Sovereign Green Bonds (SGrBs).

IANS