RBI injects ₹1 lakh cr in banks; know why the need of funds before the festive season

The Reserve Bank of India (RBI) has infused ₹1 lakh crore of liquidity into the banking system. This move comes amidst rising demand for cash ahead of the festive season and increased funding pressure on banks. The RBI provided these funds through a 7-day Variable Rate Repo (VRR) operation, which is expected to offer immediate relief to banks regarding their funding requirements.

Kolkata: With the onset of the festive season, pressure regarding the availability of funds within the country’s banking system has intensified. In response, the Reserve Bank of India (RBI) has provided ₹1 lakh crore in liquidity to offer relief to banks. The RBI injected these funds into the system through a 7-day Variable Rate Repo (VRR) operation. This marks the RBI’s first major liquidity infusion since........

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