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Banking system liquidity surplus tops ₹4 trillion; strong VRRR demand
Mumbai
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The liquidity surplus in the banking system, measured by banks parking funds in the Reserve Bank of India's liquidity adjustment facility (LAF), surged to ₹4.04 trillion on Thursday, the highest since 19 May 2022.
The surge in liquidity is mainly due to increased government spending following a record surplus transfer by the central bank—₹2.69 trillion—in May.
RBI conducted a 7-day Variable Rate Reverse Repo (VRRR) auction for which it received bids worth ₹1.7 trillion against the notified amount of ₹1 trillion. The central bank accepted ₹1 trillion at a cut-off rate of 5.47 per cent.
The bidding was significantly higher
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Indian Express
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