The Reserve Bank of India (RBI) received bids for drawing funds aggregating ₹1,35,514 crore from banks against the notified amount of ₹75,000 crore at the 14-day variable rate repo (VRR) auction amid liquidity tightness in the system.

An indication of the liquidity tightness is that the money market rates on Friday closed higher at 6.69 per cent, 19 basis points above the repo rate of 6.50 per cent, against previous close of 6.42 per cent.

The central bank accepted infused liquidity amounting to ₹75,001 crore via the VRR auction at a weighted average rate of 6.62 per cent.

Nuvama, in a report, said, “As on 13th June, India system liquidity deficit was at ₹14,822 crore (without adjustments to daily CRR imbalances). Conditions should tighten further on the back of quarterly advance tax payments this week.”

In his monetary policy statement, RBI Governor Shaktikanta Das said, “Looking ahead, the Reserve Bank will continue to be nimble and flexible in its liquidity management through main and fine-tuning operations in both repo and reverse repo.

“We will deploy an appropriate mix of instruments to modulate both frictional and durable liquidity so as to ensure that money market interest rates evolve in an orderly manner which preserves financial stability.”

The RBI stands committed to maintain stability and orderliness in all segments of financial markets and institutions regulated by it, he added.