The Reserve Bank of India (RBI) on Friday infused Rs 75,000 crore into the banking system through Variable Rate Repo (VRR) auction, aiming to provide funds to the banks ahead of advance tax and Goods and Services Tax (GST) payments which will drain out liquidity from the system. Advance tax and GST payments are expected to drain out nearly Rs 2.5 trillion from the banking system.
“Liquidity may turn into a deficit mode next week, as close to Rs 2.5 trillion is estimated to flow out of the banking system due to advanced tax