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The Reserve Bank of India (RBI), on Friday, conducted a three-day Variable Rate Repo auction to infuse liquidity amounting to ₹75,000 crore in the banking system in a bid to cool overnight call money market rates.
The central bank had conducted a one-day Variable Rate Repo auction for ₹50,000 crore on Thursday, too, as overnight call money market rates shot up following tightness in liquidity due to outflows from Banks on account GST payments by their clients.
As against the notified amount of ₹75,000 crore, the RBI received bids aggregating ₹1,22,170 crore at the Variable Rate Repo auction on Friday.
The central bank allocated ₹75,005 crore to the banks at the cut-off rate of 4.09 per cent.
Overnight call money was dealt in the 2.20-4.55 per cent range on Friday, per CCIL data. On Thursday, overnight call money was dealt in the 2.10-4.65 per cent range.
Meanwhile, at the auction of the Government Security (GS) maturing in 2026 (coupon rate:5.74 per cent), about 34 per cent of the notified amount of ₹6,000 crore devolved on primary dealers.
The auction of other three papers, 4.56 per cent GS 2023 ( ₹2,000 crore), 6.67 per cent GS 2035 ( ₹9,000 crore) and 6.99 per cent GS 2051 ( ₹7,000 crore), sailed through.
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