BANKING & FINANCE
RBI
RBI Manages Liquidity via ₹48,014 Crore Variable Rate Repo Auction
The Reserve Bank of India conducted a Variable Rate Repo (VRR) auction to infuse ₹48,014 crore into the banking system to tackle short-term liquidity deficits.
The 7-day tenure instrument saw a cut-off rate of approximately 5.26%, reflecting market-determined borrowing costs.
While the central bank offered a total of ₹1.50 lakh crore, the actual uptake remained lower as banks borrowed only a portion of the available liquidity.
This move is part of RBI's liquidity management framework used specifically when temporary factors like tax outflows or seasonal demand tighten the money market.
Exam Perspective: Understanding the VRR mechanism is crucial as it signifies the central bank's stance on maintaining a balanced liquidity environment without altering long-term policy rates.
The 7-day tenure instrument saw a cut-off rate of approximately 5.26%, reflecting market-determined borrowing costs.
While the central bank offered a total of ₹1.50 lakh crore, the actual uptake remained lower as banks borrowed only a portion of the available liquidity.
This move is part of RBI's liquidity management framework used specifically when temporary factors like tax outflows or seasonal demand tighten the money market.
Exam Perspective: Understanding the VRR mechanism is crucial as it signifies the central bank's stance on maintaining a balanced liquidity environment without altering long-term policy rates.
Key Facts / Static GK
RBI Headquarters: Mumbai
RBI Governor: Shaktikanta Das (25th)
Repo Rate Definition: The rate at which the central bank lends money to commercial banks in the event of any shortfall of funds.
RBI Governor: Shaktikanta Das (25th)
Repo Rate Definition: The rate at which the central bank lends money to commercial banks in the event of any shortfall of funds.
Practice Quiz — 20 March 2026
Q1. What does the name of the joint military exercise 'LAMITIYE' mean in the Creole language?
Answer: (C) Friendship — The term 'LAMITIYE' means 'Friendship' in the Creole language, reflecting the cooperation between India and Seychelles.
Q2. In the VRR auction conducted by RBI on 20th March 2026, what was the total amount actually injected into the banking system?
Answer: (C) ₹48,014 crore — According to the news report, while the RBI offered ₹1.50 lakh crore, the actual liquidity injection via the VRR auction was ₹48,014 crore due to lower uptake by banks.
Q3. Regarding the expansion of UPI in Sri Lanka, which of the following statements is true?
Answer: (B) Payments are made by scanning Lanka QR codes through UPI apps. — Indian users can make real-time payments in Sri Lanka by scanning Lanka QR codes using their preferred UPI-enabled mobile applications.
Q4. Which company has launched the world's first Autonomous Maritime Shipbuilding Centre in Nellore?
Answer: (B) Sagar Defence Engineering Pvt Ltd — Sagar Defence Engineering Pvt Ltd has launched this center, which is the first of its kind globally, in Nellore, Andhra Pradesh.
Q5. In the newly launched hybrid passive index fund by Edelweiss AMC, what is the allocated ratio between Equity and Debt components?
Answer: (C) 70:30 — The fund, as indicated in its name and strategy, maintains a fixed asset allocation of 70% in Equity and 30% in Debt (Government Securities).
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