The Reserve Bank of India (RBI) conducted two variable rate repo (VRR) auctions, injecting a total of Rs 84,582 crore into the banking system on Monday. The first auction saw Rs 50,001 crore injected at a cut-off rate of 5.34% and a weighted average rate of 5.44%. Subsequently, another Rs 34,581 crore was injected at a cut-off rate of 5.26% and a weighted average rate of 5.30%.
The central bank received bids exceeding the notified amount in the first auction, accepting bids worth Rs 50,001 crore. However, bids were lower than the notified amount in the second auction. As of March 27, there is an estimated surplus liquidity of about Rs 1.27 lakh crore in the banking system.
In recent days, the RBI has injected Rs 2,73,530 crore of transient liquidity through VRR auctions of various tenures. Additionally, 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.
The Centre, in consultation with the RBI, announced plans to borrow Rs 8.20 lakh crore during the first half (H1) of the financial year 2026-27. This borrowing constitutes 51% of the total amount planned for the year, with Rs 15,000 crore to be raised through Sovereign Green Bonds (SGrBs).
