RBI Injects Rs 79,256 Crore in Liquidity Boost

The Reserve Bank of India (RBI) took significant steps to address liquidity shortages in the banking sector by injecting Rs 79,256 crore through an overnight variable rate auction on Monday. This measure was implemented despite being below the anticipated Rs 1 lakh crore.

According to the central bank, the funds were disbursed at a cut-off and weighted average rate of 5.26 percent. The shortfall in liquidity arose primarily due to advance tax payments, placing the banking system's liquidity in deficit, estimated at Rs 65,395.64 crore as of March 23.

In recent days, the RBI has made several similar interventions, including a Rs 25,101 crore injection through a three-day VRR auction on March 20, and a Rs 48,014 crore infusion via a seven-day VRR on March 17. Since January 2026, the central bank has infused Rs 3.50 lakh crore of durable liquidity through open market purchases of government securities.