MUMBAI, Apr 17: The Reserve Bank of India (RBI) on Friday pulled out Rs 2,00,031 crore transient liquidity from the banking system through a seven-day variable rate reverse repo (VRRR) auction.
The central bank had received higher bids worth Rs 2,28,098 crore than the notified amount of Rs 2 lakh crore in the auction.
The RBI accepted the bid at a 5.24 per cent cut-off rate and 5.23 per cent weighted average rate.
Currently, the liquidity in the banking system is estimated to be in surplus of around Rs 4.09 lakh crore.
Before this, the central bank had conducted a seven-day VRRR auction on April 10 and pulled out Rs 2,00,041 crore of transient liquidity from the banking system. These funds were reversed today into the banking system.
“Going ahead, we will continue to be proactive and pre-emptive in liquidity management and ensure sufficient liquidity in the banking system to meet the productive requirements of the economy,” RBI Governor Sanjay Malhotra said during the April monetary policy. (PTI)
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