How much liquidity did the Reserve Bank of India inject?

The Reserve Bank of India injected ₹48,014 crore of transient liquidity into the banking system.

What caused the recent drop in banking system liquidity?

The liquidity in the banking system decreased sharply due to advance tax payments.

What is the expected impact of GST payments on banking liquidity?

Liquidity in the banking system is expected to tighten further after outflows towards payment of goods and services tax.

Home / Business and Economy / RBI Injects Lakhs to Ease Banking System Strain

RBI Injects Lakhs to Ease Banking System Strain

17 Mar

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Summary

RBI injected ₹48,014 crore into the banking system.
Liquidity fell sharply due to advance tax payments.
Further liquidity drain expected from GST payments.

RBI Injects Lakhs to Ease Banking System Strain

The Reserve Bank of India (RBI) injected ₹48,014 crore of transient liquidity into the banking system on Tuesday through a seven-day variable rate repo auction. This injection occurred at a cut-off and weighted average rate of 5.26 percent.

The amount infused was considerably less than the notified ₹1.50 lakh crore, despite a sharp decline in surplus liquidity. This reduction in funds is largely attributed to advance tax payments made by corporations.

Liquidity in the banking system is currently estimated at a surplus of approximately ₹75,483.63 crore as of March 16, a significant decrease from ₹2.08 lakh crore recorded on March 15 before the advance tax outflows.