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Bankers termed the Reserve Bank's move to hold rates in its policy review on Wednesday as a prudent and well-calibrated measure. Sector-specific moves like the removal of the Investment Fluctuation Reserve requirement and easing of CRAR (capital and risk-adjusted ratio) computation were also welcomed by bankers. "The RBI's decision to maintain a status quo stance amid ongoing global uncertainties reflects a prudent and well-calibrated approach aligned with market expectations," CS Setty, who chairs the largest lender SBI and also industry grouping IBA, said in a statement. Setty said the regulatory moves will help strengthen banks' capital positions and help support credit growth on a sustained basis. Indian Overseas Bank's managing director and chief executive, Ajay Kumar Srivastava, said the status quo reflects a 'safety first' approach wherein the central bank is prioritising macroeconomic stability. "A cautious stance is warranted amid evolving global uncertainties, particular
The Reserve Bank of India (RBI) on Tuesday injected Rs 55,837 crore transient liquidity into the banking system through three-day variable rate repo (VRR) auction. The RBI injected the funds at cut-off and weighted average rates of 5.26 per cent, the central bank said in a release. The liquidity injected was much lower than the notified amount of Rs 1 lakh crore, despite the sharp drop in surplus liquidity in the banking system due to advance tax payments. Currently, liquidity in the banking system is estimated to be in surplus of about Rs 26,196.36 crore as on March 23. In the last few days, the central bank infused transient liquidity of Rs 2,08,208 crore into the banking system through VRR auctions of various tenures. Prior to this, the RBI infused Rs 3.50 lakh crore of durable liquidity into the banking system through open market purchase (OMO) of government securities since January 2026.
The Reserve Bank of India on Friday said it will conduct an overnight variable rate repo (VRR) auction of Rs 1 lakh crore on March 23. The auction will take place between 9:30 am and 10:00 am on March 23, and the reversal of these funds will take place on March 24, as per the central bank's release. The central bank announced the auction based on the current and evolving liquidity conditions of the banking system, the release added. Currently, the liquidity in the banking system is estimated to be in surplus of around Rs 16,875.36 crore. Earlier today, the central bank infused Rs 25,101 crore transient liquidity in the banking system through a three-day VRR auction. On March 17, the central bank injected Rs 48,014 crore liquidity into the banking system via a seven-day VRR. Before this, the RBI has infused Rs 3.50 lakh crore of durable liquidity into the banking system through open market purchase (OMO) of government securities since January 2026.
Reserve Bank Governor Sanjay Malhotra voted for the status quo in the key interest rate earlier this month, saying the current policy rate was appropriate, given the buoyant economic growth and benign inflation, according to the MPC meeting minutes released on Friday. The Reserve Bank kept the short-term lending rate (repo) unchanged at 5.25 per cent after the Monetary Policy Committee (MPC) meeting held from February 4 to 6. The governor and the other five members of the MPC had voted to keep the repo rate unchanged. According to the minutes, Malhotra argued that India's macroeconomic fundamentals, over the medium-term, including the external sector, remain healthy and robust. "Given the present state of the economy and its outlook -- buoyant growth and benign inflation -- I feel the current policy rate is appropriate. Accordingly, I vote for continuation of the policy repo rate at 5.25 per cent and retain the neutral stance," he said. Deputy Governor Poonam Gupta said that, ...