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The Reserve Bank of India on Friday said it will conduct an overnight variable rate repo (VRR) auction of Rs 1 lakh crore on March 23. The auction will take place between 9:30 am and 10:00 am on March 23, and the reversal of these funds will take place on March 24, as per the central bank's release. The central bank announced the auction based on the current and evolving liquidity conditions of the banking system, the release added. Currently, the liquidity in the banking system is estimated to be in surplus of around Rs 16,875.36 crore. Earlier today, the central bank infused Rs 25,101 crore transient liquidity in the banking system through a three-day VRR auction. On March 17, the central bank injected Rs 48,014 crore liquidity into the banking system via a seven-day VRR. Before this, the RBI has infused Rs 3.50 lakh crore of durable liquidity into the banking system through open market purchase (OMO) of government securities since January 2026.
India's forex reserves dropped USD 7.052 billion to USD 709.759 billion during the week ended March 13, the RBI said on Friday. In the previous reporting week, the overall reserves had dropped USD 11.683 billion to USD 716.81 billion. The kitty had expanded to an all-time high of USD 725.727 billion during the week ended February 13 this year. For the week ended March 13, foreign currency assets, a major component of the reserves, fell USD 7.678 billion to USD 555.568 billion, the data released by the central bank showed. Expressed in dollar terms, the foreign currency assets include effects of appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in the foreign exchange reserves. Value of gold reserves increased USD 664 million to USD 130.681 billion during the week, the RBI said. The Special Drawing Rights (SDRs) were down USD 23 million to USD 18.697 billion, the apex bank said. India's reserve position with the IMF was also down by USD 15 millio
A day after HDFC Bank Chairman Atanu Chakraborty resigned on ethical concerns, a top Finance Ministry official on Thursday said the bank is a "strong institution with strong fundamentals". Financial Services Secretary M Nagaraju said the Reserve Bank of India (RBI) has already issued a statement in this regard. "HDFC Bank is a strong institution with strong fundamentals," he told reporters. The remarks come after the sudden exit of Chakraborty as chairman of HDFC Bank -- the country's second-biggest lender -- effective March 18, 2026, citing ethical concerns. This is the first time that a part-time chairman of HDFC Bank has left mid-way, raising concerns over its functioning. Earlier in the day, the Reserve Bank said there were no material concerns on record as regards the bank's conduct or governance. "HDFC Bank is a Domestic Systemically Important Bank (D-SIB) with sound financials, a professionally run board and a competent management team. Based on our periodical assessment, t
The Reserve Bank of India (RBI) is working on providing more avenues for the usage of Indian rupee (INR) accumulated by the Russian trade counterparts, a senior official said on Thursday. The Central Bank is looking at avenues to either settle Indian rupees of Russian trade counterparts lying in India for imports or for making capital investments in India, he added. "We are working on providing various avenues for using the INR, which is accumulated here by the Russian counterparts, to use it either for settling their imports or making capital investments in India, so on and so forth," N Senthil Kumar, chief general manager in RBI's Foreign Exchange Department, said at the Russia-India forum in Mumbai. For the past few years, both countries have focused on local currencies to settle bilateral trade and reduce reliance on the US Dollar. Last year, the RBI was allowed to invest surplus balances in government securities. Kumar noted an "inertia" among stakeholders in transacting in lo