Archive · 24 Sep 2025
RBI Addresses Liquidity Shortage with VRR Auctions
The banking system is short on money, called a liquidity deficit.
This shortage is because of tax payments.
The Reserve Bank of India (RBI) is helping by holding auctions to add money.
They held one on Wednesday and will hold another on Thursday.
These actions aim to ensure that banks have enough funds.
Banking system liquidity deficit widened to ₹87,183 crore on September 23.
The deficit is attributed to advance tax and GST outflows.
RBI conducted a VRR auction on Wednesday for ₹1.50 lakh crore.
Banks bid at a weighted average rate of 5.51% at the VRR auction.
RBI will conduct another VRR auction on Thursday for ₹1.25 lakh crore.
- Who
- RBI
- What
- Addressing liquidity deficit in the banking system
- When
- September 2025
- Where
- N/A
- Why
- To alleviate liquidity deficit
Banking System
RBI
Cash Flow
Banking System
Banks have liquidity deficit.
RBI
RBI solves liquidity shortage with auctions.
- Liquidity Deficit on September 23
- ₹87,183 crore
- Liquidity Deficit on September 22
- ₹31,987 crore
- Reason for Deficit
- Advance tax and GST outflows
- VRR Auction on Wednesday
- ₹1.50 lakh crore
- Weighted Average Rate
- 5.51%
- Upcoming VRR Auction
- ₹1.25 lakh crore on Thursday
