The banking system's liquidity slipped into deficit after remaining in surplus for nearly three months, weighed down by advance tax outflows and higher currency leakage. Net liquidity stood at a deficit of Rs 19,971.9 crore on Monday, according to the latest Reserve Bank of India (RBI) data, marking the first deficit since March 22. RBI's Intervention and Market Response Consequently, the weighted average call rate (WACR) — the operating target of monetary policy — rose to 5.38 per cent on Tuesday from 5.33 per cent on Monday. To ease the transient liquidity tightness, the RBI injected Rs 1.41 trillion into the banking system on Tuesday through a seven-day variable rate repo (VRR) auction.