 "Banks park ₹90,931 cr at RBI's 4-day VRR auction, against notified ₹1 trn")
Banks on Friday bid Rs 90,931 crore against the notified amount of Rs 1 trillion at the four-day variable rate repo (VRR) auction as the net liquidity in the banking system improved to a surplus of Rs 12,982 crore on Thursday, against the previous day’s net deficit of Rs 26,318 crore, latest data from the Reserve Bank of India showed.
Banks parked the funds at a cut-off rate of 5.51 per cent.
A VRR auction is a monetary tool used by the central bank to inject short-term liquidity into the banking system, offering funds to banks at rates determined by market demand.
The weighted average call rate (WACR), the operating target of monetary policy, settled at 5.59 per cent on Friday, against the previous close of 5.58 per cent.
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