RBI to inject liquidity via Rs 50,000 crore repo auction ahead of MPC meeting

The Reserve Financial institution of India (RBI) on Tuesday introduced a Rs 50,000 crore two-day Variable Fee Repo (VRR) auction, a transfer aimed toward managing short-term liquidity circumstances ahead of the central financial institution’s financial coverage assessment.The auction can be carried out on June 3 between 9:30 am and 10 am, whereas the reversal of funds will happen on June 5.“On a assessment of present and evolving liquidity circumstances, it has been determined to conduct a Variable Fee Repo (VRR) auction on Wednesday, June 03, 2026,” the RBI mentioned in a launch.The announcement comes as surplus liquidity within the banking system has moderated in current days. System liquidity stood at a surplus of about Rs 85,411.44 crore as of June 1, in contrast with a surplus of Rs 1.40 lakh crore on Might 31.The central financial institution’s newest liquidity operation additionally mirrored muted demand from banks.Within the three-day VRR auction carried out on Tuesday, the RBI acquired bids price Rs 17,445 crore in opposition to the notified quantity of Rs 75,000 crore.The central financial institution accepted your entire quantity and injected Rs 17,445 crore into the banking system at a cut-off and weighted common fee of 5.26 per cent, in accordance to an RBI launch.The newest liquidity operation comes because the Financial Coverage Committee (MPC) begins its three-day meeting on June 3, with the coverage choice scheduled to be introduced on June 5.