Net liquidity stood at a surplus of ₹4,772 crore on Wednesday, compared with a surplus of ₹23,881 crore on Tuesday, the latest data from the RBI showed
The Reserve Bank of India (RBI) plans to conduct a three-day variable rate repo (VRR) auction on Friday worth ₹1 trillion to address evolving liquidity conditions in the banking system.
The move comes amid a moderation in surplus liquidity following advance tax outflows.
Net liquidity stood at a surplus of ₹4,772 crore on Wednesday, compared with a surplus of ₹23,881 crore on Tuesday, the latest data from the RBI showed.
VRR auctions allow banks to borrow funds from the RBI against government securities at market-determined rates, helping the central bank manage short-term liquidity in the financial system.
The weighted average call rate settled at 5.33 per cent on Thursday, compared with 5.35 per cent on Wednesday.
The central bank actively uses variable rate repo and reverse repo operations to keep overnight rates within the liquidity adjustment facility (LAF) corridor, bounded by the standing deposit facility (SDF) rate at the lower end and the marginal standing facility (MSF) rate at the upper end, while ensuring that the weighted average call rate remains closely aligned with the policy repo rate, the operating target of monetary policy.
First Published: Jun 18 2026 | 9:37 PM IST