As liquidity tightens, RBI injects Rs 1 trn for largest infusion in 4 years

This is the first time since 2019 that RBI has infused more than Rs 1 trillion

With the onset of corporate advance taxes leading to significant outflows from the banking system, the Reserve Bank of India on Thursday injected Rs 1.1 trillion into the system for the largest liquidity infusion in a day since April 24, 2019.

According to its data, the RBI injected net liquidity worth Rs 110, 772 crore into the banking system on March 16. Thursday’s injection of funds also marks the first time since April 24, 2019 that the RBI infused more than Rs 1 trillion into the banking system.

The tighter liquidity conditions resulted in a sharp rise in money market