Banks put in lesser amounts in VRRR auctions ahead of FY22-end

The RBI has been conducting VRRR auctions to manage surplus liquidity in the system

Banks on Tuesday put in lower than notified amounts in the Reserve Bank of India’s (RBI’s) two variable rate reverse repo (VRRR) auctions for Rs 1.5 trillion as they predominantly preferred to maintain cash on their books ahead of the close of FY22.

The three-day VRRR auction for Rs 1 trillion saw offers for Rs 67,422 crore. The RBI accepted the amount with a cut-off rate of 3.99 per cent. The 28-day VRRR auction for Rs 50,000 crore saw banks putting in Rs 47,190 crore. Bankers said the demand from customers remained high at the end of March and banks wanted