Liquidity

Stock scam ‌scandals led India to develop strict requirements for its cash equities market, with rules tightened in the early 2000s and then again in the period 2017 to 2020

The Reserve Bank of India (RBI) on Tuesday injected Rs 1,41,171 crore transient liquidity into the banking system through a seven-day variable rate repo (VRR) auction. The funds were infused at a cut-off and weighted average rate of 5.26 per cent, according to the RBI's release. This was done after the liquidity in the banking system turned in to deficit of Rs 19,971.89 crore as on June 22, from a surplus of Rs 30,685.11 crore as on June 21. Experts attributed the tightening of liquidity to the outflows on account of goods and services tax (GST) payments from the banking system. The liquidity entering the deficit territory has put pressure on the overnight money market rates, with weighted average call money rate trading at 5.43 per cent, which is 0.18 per cent above the RBI's repo rate. Similarly, the tri-party repo (treps) were trading 0.05-0.07 per cent over the repo rate. In the last few days, the central bank has been infusing transient liquidity into the banking system as i

The central bank will conduct a three-day variable rate repo auction to address evolving liquidity conditions after surplus liquidity moderated due to advance tax outflows

Banks have begun pricing in stronger liquidity conditions after RBI measures to attract foreign inflows, reducing funding pressures and lowering short-term borrowing costs

Surplus liquidity fell to ₹23,881.21 crore on June 16 from ₹1.51 trillion a day earlier; overnight rates trade above repo rate

Expected inflows could help narrow the credit-deposit gap

Draft framework would allow lenders to align deposit rates with liquidity costs under LCR norms, improving pricing efficiency and balance-sheet management

The Reserve Bank of India will conduct an overnight VRR auction on Thursday to manage evolving liquidity conditions and keep overnight rates aligned with the policy repo rate

The Reserve Bank of India will conduct a five-day variable rate repo auction to manage evolving liquidity conditions in the banking system

The Reserve Bank of India will conduct a Rs 50,000 crore VRR auction after overnight call rates moved above the policy repo rate amid evolving liquidity conditions

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The Reserve Bank of India will conduct a four-day variable rate repo auction worth Rs 75,000 crore to manage evolving liquidity conditions in the banking system

Central bank absorbs surplus liquidity as banks bid Rs 2.28 trillion in VRRR auction, reflecting robust demand amid easing liquidity conditions

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.

RBI to conduct Rs 2 trillion variable rate reverse repo auction to absorb surplus liquidity, with banking system surplus remaining above Rs 5 trillion

Despite a headline liquidity surplus, India's banking system faces tightening funding conditions, rising short-term rates, and persistent external pressures weighing on liquidity

RBI drains Rs 2 trillion surplus liquidity through VRRR auction, its first in four months, pushing bond yields higher amid excess liquidity in banking system

The Reserve Bank of India on Friday said it will conduct a variable rate reverse repo auction for ₹2 trillion ($21.58 billion), its first such operation in four months

Move expected to improve liquidity and price discovery, though borrowing costs may remain aligned with commercial paper rates due to credit profile differences

Banking liquidity hits four-year high on G-sec maturities, with surplus nearing ₹5 trillion and call rates softening as RBI signals continued proactive support