♦ The Reserve Bank of India (RBI) has announced that it will inject Rs 2,50,000 crore through its Variable Rate Repo (VRR) auction to enhance liquidity in the banking system.

♦ The RBI also said it will be conducting daily VRR auctions on all working days in Mumbai with reversal taking place on the next working day, until further notice.

♦ India’s banking system liquidity deficit quadrupled in less than a week to around 2 trillion rupees as on February 10, with traders citing tax outflows and aggressive dollar sales by the central bank as reasons for the jump.