RBI injects Rs 1 lakh crore as liquidity tightens before festive season

What happened: The RBI announced a Rs 1-lakh-crore variable rate repo auction on Monday, its first since late July, and will conduct another VRR for Rs 50,000 crore on Wednesday. Key numbers: VRR size Rs 1 lakh crore; bids Rs 1.50 lakh crore; WACR 5.67% vs repo 5.50%, a 17 basis point gap; liquidity surplus Rs 1.99 lakh crore as of October Why it matters: The infusion is meant to keep the overnight rate near the repo rate, with the WACR having risen to the MSF after the RBI tightened the daily cash reserve requirement. Traders said it also helps banks manage funds amid monthly tax outflow.

RBI's Rs 1 lakh crore liquidity injection addresses tightening before festive season demand.

RBI's Rs 1 lakh crore liquidity injection addresses tightening before festive season demand. — impact context not separately stored; see What changed.