The Reserve Bank of India (RBI) has implemented a significant liquidity infusion by conducting variable rate repo (VRR) auctions

The Reserve Bank of India (RBI) has implemented a significant liquidity infusion by conducting variable rate repo (VRR) auctions, totaling Rs 1.25 trillion. This substantial measure is part of the RBI's ongoing efforts to alleviate the liquidity deficit within the banking system. Over the month, the RBI has conducted a series of nine VRR auctions, cumulatively infusing Rs 7.75 trillion into the banking system​ (adda247)​​ (Testbook)​. This strategy aims to ensure that banks have adequate liquidity to support lending and maintain overall financial stability.