RBI resumes 7 day auction injecting ₹1L/cr after July pause
On Monday, the Reserve Bank of India (RBI) pumped ₹1 lakh crore into the banking system through a seven-day auction.
This move comes as banks have been running low on extra cash lately.
The auction drew strong interest, with bids totaling over ₹1.5 lakh crore, but RBI settled at just over ₹1 lakh crore at an average rate of 5.52%.
It's the first time since July that RBI has used this tool, signaling a shift in how they're managing money flow.
RBI's absorption rose to ₹7.8L/cr
Since August, RBI has been soaking up excess cash from banks using different auctions, mainly because of a big pileup of foreign currency deposits earlier this year.
Daily absorption jumped from ₹1.2 lakh crore in July to ₹7.8 lakh crore by September 2026.
These moves help make the recent 25 basis points repo rate hike more effective and keep the banking system balanced as surplus funds have dropped sharply this month.