India, June 24 -- The Reserve Bank of India (RBI) on Tuesday injected Rs 1,41,171 crore transient liquidity into the banking system through a seven-day variable rate repo (VRR) auction.

The funds were infused at a cut-off and weighted average rate of 5.26 per cent, according to the RBI's release.

This was done after the liquidity in the banking system turned into a deficit of Rs 19,971.89 crore as on June 22, from a surplus of Rs 30,685.11 crore as on June 21.

Experts attributed the tightening of liquidity to the outflows on account of goods and services tax (GST) payments from the banking system.

The liquidity entering the deficit territory has put pressure on the overnight money market rates, with weighted average call money rate tr...