RBI to hold five-day variable rate repo auction worth Rs 75k cr on March 24

The Reserve Bank of India (RBI) will conduct a five-day variable rate repo auction worth Rs 75,000 crore on March 24. 

“On a review of current and evolving liquidity conditions, the Reserve Bank of India has decided to conduct a fine-tuning five-day Variable Rate Repo (VRR) auction for the fortnight beginning March 24, 2023 instead of the main operation of a 14-day variable rate Repo/ Reverse Repo auction,” the central bank said. 

The RBI conducts repo operations in order to infuse liquidity into the banking system. 

The variable rate repo auction will be held between 10:30-11:00 am on Friday, while the date of reversal is March 29. Liquidity in the banking system has tightened significantly over the last eight days due to outflows on account of advance tax and Goods and Services Tax payments.