RBI announced on 2nd June 2026 a Rs 50,000 crore two-day Variable Rate Repo (VRR) auction; this will manage short-term liquidity conditions ahead of the central bank's monetary policy review. The Variable Rate Repo auction was conducted on 3rd June from 9:30 to 10 a.m., while the fund reversal will occur on 5th June.
As there is surplus liquidity in the banking system, it has moderated, and the surplus amount is Rs 85,411.44 crore. RBI liquidity operation shows muted demand from central banks. RBI has received bids of Rs 17,445 crore against the amount of Rs 75,000. RBI has accepted the entire amount and has injected around Rs 17,445 crore into the banking system, at an average rate of 5.26 percent as per the RBI notification. This operation was conducted because the Monetary Policy Committee started its three-day meeting on 3rd June and the policy decision will be announced on 5th June.
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