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Listen to this article in summarized format The Reserve Bank of India has conducted multiple operations - durable and transient - to drain excess liquidity, including open market operation (OMO) sales and variable rate reverse repo (VRRR) auctions. Additionally, GST outflows and weekly g-sec auctions have also helped drain the excess. Read more: Sebi to address concerns over settlement price for derivatives on expiry days, says chief Tuhin Kanta Pandey "I think the RBI will be comfortable with a surplus of ₹3-4 lakh crore, because they also have to maintain liquidity to 1% of NDTL. Plus, we are also approaching the quarter end, where demand for funds is typically high, which is showing up in call rates," said AN Vinod, head of treasury, South Indian Bank. The RBI will conduct one more ₹25,000 crore OMO operation on Monday, while the government will sell ₹32,000 crore 10 year bond on Friday, draining further liquidity. "I expect liquidity to increase a little by month end, because government expenditure will come in, which can take system liquidity to around ₹5 lakh crore," said Gaura Sengupta, chief economist at IDFC First Bank. Read more: Ahead of Market: 10 things that will decide stock market action on Wednesday "Its not that the Reserve Bank of India needs to hit a certain level of liquidity to manage the WACR. I think the VRRR manages the call rate well because even though the VRRR is temporary, the Reserve Bank of India keeps rolling it over," Sengupta said. The RBI drained ₹71,971 crore via a VRRR auction on Tuesday, where the notified amount stood at ₹75,000 crore. The central bank will conduct another VRRR for ₹75,000 crore on Wednesday. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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