RBI injects Rs 1 lakh crore as liquidity tightens before festive season
On Monday, the RBI announced a Rs 1-lakh-crore variable rate repo (VRR) auction for the first time since late July after the weighted average call rate (WACR) at 5.67% on Monday, or 17 basis points higher than the repo rate of 5.50%. The central bank will conduct another VRR for Rs 50,000 crore on Wednesday.
Mumbai: For weeks, India's central bank had its task-list full, draining excess liquidity after an overwhelming diaspora response to forex-inflow programs. Now, as the festive season slots into top gear, the Reserve Bank of India operationalised its first liquidity infusion program in three months after the overnight call rates shot past the policy benchmark.On Monday, the RBI announced a Rs 1-lakh-crore variable rate repo (VRR) auction for the first time since late July after the weighted average call rate (WACR) at 5.67% on Monday, or 17 basis points higher than the repo rate of 5.50%.
