Banks bid 2.5 times at Rs 4.75 trn against notified amount at VRR auction

Bids totaling 2.7 times the notified amount were received at VRR auction on December 15

Banks submitted bids amounting to Rs 4.75 trillion, around 2.5 times against the notified amount of Rs 1.75 trillion, at the Variable Rate Reverse Repo (VRR) auction conducted by the Reserve Bank of India (RBI) on Friday, a day after the liquidity deficit in the banking system widened to Rs 2.5 trillion.

In the most recent VRR auction held by the Reserve Bank of India (RBI) on December 15, bids totaling 2.7 times the notified amount were received. Banks secured Rs 1 trillion at a weighted average rate of 6.63 per cent. This VRR auction marked the central bank's return