RBI announces Rs 75,000 crore four-day VRR auction amid surplus liquidity

The Reserve Bank of India will conduct a four-day variable rate repo auction worth Rs 75,000 crore to manage evolving liquidity conditions in the banking system

The Reserve Bank of India (RBI) plans to conduct a four-day variable rate repo (VRR) auction worth  ₹75,000 crore on Thursday to address evolving liquidity conditions in the banking system, the central bank said in a release on Wednesday.

 

The net liquidity in the banking system stood at a surplus of ₹2.8 trillion on Tuesday, the latest RBI data showed.

 

VRR auctions allow banks to borrow funds from the RBI against government securities at market-determined rates, helping the central bank manage short-term liquidity in the financial system.