RBI Conducts Rs 1.50 Lakh Crore VRR Auction, Injects Rs 48,014 Crore into Banking System

The Reserve Bank of India (RBI) conducted a seven-day variable rate repo (VRR) auction on March 17, offering Rs 1.50 lakh crore to manage liquidity. However, banks bid for only Rs 48,014 crore amid a sharp decline in surplus liquidity from Rs 2.08 lakh crore to around Rs 75,483 crore due to advance tax payments. The RBI has infused Rs 3.50 lakh crore of durable liquidity since January 2026 to stabilize overnight rates, which remain below the repo rate. Liquidity is expected to tighten further with upcoming GST payments.