The central bank will provide banks with up to ₹75,000 crore in overnight funding to ease short-term liquidity tightness in the banking system.
The Reserve Bank of India will conduct a ₹75,000 crore overnight Variable Rate Repo auction on June 15, offering banks access to funds that must be repaid the following day. The step is aimed at easing short-term liquidity tightness in the banking system, using a repo operation (central bank liquidity injection against collateral) to supply temporary cash to lenders.