India, June 18 -- The Reserve Bank of India (RBI) on Wednesday infused Rs 72,300 crore transient liquidity through two Variable Rate Repo (VRR) auction into the banking system after surplus liquidity narrowed following advance tax payments.

The central bank injected Rs 50,016 crore through a two-day VRR auction at a cut-off rate of 5.26 per cent. It also infused another Rs 22,284 crore via a second two-day VRR auction. Variable rate repo auctions are used by the RBI to manage liquidity mismatches in the banking system. Currently, liquidity in the banking system is estimated to be in surplus of around Rs 23,881.21 crore as on June 16, which was lower compared to a surplus of around Rs 1.51 lakh crore as on June 15, according to the RBI's ...