RBI Injects ₹2 Trillion into Banking System via Daily VRR Auction

The Reserve Bank of India (RBI) has successfully allotted bids worth ₹2 trillion in its latest daily Variable Rate Repo (VRR) auction, addressing the persistent liquidity crunch in the banking system. This move comes as part of the central bank's proactive liquidity management strategy, initiated in January 2025. The auction, conducted on February 11, 2025, aligns with the RBI's commitment to maintain financial stability amid a prolonged liquidity deficit, which stood at ₹1.33 lakh crore as of February 7. This significant liquidity injection is expected to ease interbank lending rates and support overall market stability.

Sources: Reserve Bank of India, Business Standard, CNBC TV18