Weekly policy watch: RBI liquidity move, IIP data, forex reserves in focus | Economy & Policy News - Business
StandardMonday, August 24, 2026 | 10:12 AM ISTहिंदी में पढें Home Economy Uttar Pradesh
E-PaperDecodedOpinionIndia NewsLatest NewsBuzzing :Stock Market LiveStocks to watchH1N1 VirusCanada Visa Wait TimeIND vs
SL 2nd TestAugmont Enterprise IPOHy-Tech Engineers IPOAnti-Reservation ProtestSC on CBSE Language Policy Home / Economy
/ News / Weekly policy watch: RBI liquidity move, IIP data, forex reserves in focusWeekly policy watch: RBI liquidity
move, IIP data, forex reserves in focusThe week's policy calendar will focus on RBI liquidity management,
industrial production and forex reservesThe RBI will conduct a seven-day VRRR auction on Monday to absorb ₹2.5
trillion from the banking system. (Photo: Reuters)Rimjhim Singh New Delhi 4 min read Last Updated : Aug 24 2026 | 10:09
AM ISTListen to This Article India’s policy and economic calendar this week will focus on liquidity conditions in the
banking system, industrial activity and the country’s external financial position. The key developments include the
Reserve Bank of India’s variable rate reverse repo (VRRR) auction, the release of industrial production data and fresh
foreign exchange reserves figures. RBI to absorb ₹2.5 trillion through VRRR auction The Reserve Bank of India
will conduct a seven-day variable rate reverse repo (VRRR) auction on Monday to absorb ₹2.5 trillion from the banking
system. The move comes after banks parked ₹95,970 crore with the RBI under a three-day VRRR auction on Friday,
against the notified amount of ₹1.5 trillion. A VRRR auction is used by the central bank to temporarily absorb
excess liquidity from the banking system. Net liquidity in the banking system stood at a surplus of ₹3.5 trillion on
Thursday, according to the latest RBI data.Also Read Goldy Brar claims responsibility for Nijjar's killing: All you
need to knowSeasonal flu shot can also protect against H1N1, the virus behind swine flu'Bar deserves better':
BCI co-chair calls upon Manan Mishra to step downRBI forex swap facility attracts $72.85 billion inflows as of August
21RBI FCNR(B) swap window inflows swell to $65.39 bn, total hits $72.85 bn The weighted average call rate (WACR),
which is the operating target of monetary policy, stood at 5.19 per cent on Thursday, compared with 5.16 per cent
previously. The Standing Deposit Facility (SDF) rate is currently 5 per cent. It allows banks to park surplus funds with
the RBI without providing collateral and forms the lower end of the central bank’s policy corridor. Industrial
output data to show growth momentum India’s industrial production data will be released on August 28. Industrial
output growth rose to a 23-month high of 7.3 per cent in June, up from a downwardly revised 5 per cent in May, according
to the National Statistics Office (NSO). The increase was supported by a favourable base effect and broad-based growth
across all four major sectors. The Index of Industrial Production (IIP) stood at 123.1 in June, compared with 114.7 a
year earlier. Mining and quarrying, manufacturing, electricity and gas supply, and water supply, sewerage and waste
management all recorded growth during the month. Manufacturing data to track factory activity Manufacturing
production data will also be released on August 28. Manufacturing output grew 7.8 per cent in June, sharply higher
than the 5.2 per cent growth recorded in May. The sector accounted for most of the rise in overall industrial
production. Of the 23 industry groups covered under manufacturing, 19 recorded year-on-year growth in June.
Electrical equipment recorded the strongest increase at 34 per cent, followed by motor vehicles, trailers and
semi-trailers at 17.5 per cent and food products at 10.8 per cent. Four industry groups—petroleum products,
chemical products, wearing apparel and wood products—recorded a decline. Electricity and gas supply grew 10.6 per cent
in June, compared with 10.3 per cent in May, remaining the fastest-growing major segment. Electricity generation from
renewable sources rose 7.3 per cent, while non-renewable generation increased 13 per cent. Forex reserves to reflect
external sector strength Foreign exchange reserves data will be released on August 28, offering an update on
India’s external financial position. India’s forex reserves rose by $9.905 billion to $716.907 billion in the week
ended August 14, according to the RBI. The increase followed a $14.136 billion jump in the previous week, taking
reserves to $707.002 billion as of August 7. India’s reserves had reached a record high of $728.494 billion in the
week ended February 27 before the West Asia conflict led to several weeks of declines as the rupee came under pressure
and the RBI intervened in the foreign exchange market. For the week ended August 14, foreign currency assets, the
largest component of the reserves, increased by $7.225 billion to $581.851 billion.More From This SectionUS-Canada trade
flux may give India an edge in Ottawa negotiationspremiumSecurity cover: Pension plan for construction workers likely
under EPF0 3.0premiumThe big BIT reset: Why India is rethinking its investment treaty modelpremiumSkill ministry, Amazon
launch nationwide cloud, AI skilling programmeGoyal leads biz delegation to Japan to discuss ways to boost tradeTopics :
Reserve Bank of India IIP industrial output India manufacturing growth BS Web ReportsDon't miss the most important
news and views of the day. Get them on our Telegram channelFirst Published: Aug 24 2026 | 10:00 AM ISTHOT STOCKSSuzlon
Energy Share PriceAdani Enterprises Share PriceAdani Power Share PriceIRFC Share PriceTata Motors PV Share priceBHEL
Share PriceDr Reddy Share PriceVodafone Idea Share PriceTRENDING NEWSStock Market LiveStocks to Watch TodayGold-Silver
Rate TodayWeekly Policy WatchAugmont Enterprise IPOIMD Weather ForecastTop Losers TodayTop Gainers TodayDeep Dive Q1
OutliersFMCG Q1 FY27 ReviewWhy are BSE, Groww stocks FallingCALCULATORSIncome Tax CalculatorCrorepati CalculatorNet
Worth CalculatorEMI CalculatorSIP Calculator Retirement CalculatorCar Loan CalculatorHome Loan CalculatorEducation Loan
CalculatorMarriage Plan CalculatorQUICK LINKSStock Companies ListSubscribe to NewslettersFree Sudoku PuzzleFree
Crossword PuzzleTOP SECTIONSLatest NewsCompany NewsMarket NewsIPO NewsCommodity NewsImmigration NewsCricket NewsPersonal
FinanceTechnology NewsWorld NewsIndustry NewsEducation NewsOpinionHealth NewsEconomy NewsIndia NewsPolitics NewsBudget
2026Today's PaperAbout UsT&CPrivacy PolicyCookie PolicyDisclaimerInvestor CommunicationGST registration number
ListComplianceContact UsAdvertise with UsSitemapSubscribeCareersBS AppsCopyrights © 2026 Business Standard Private Ltd.
All rights reserved