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RBI to conduct seven-day VRRR auction on Friday to mop up liquidity

The average liquidity surplus in the system over the past two weeks-reflected by the daily absorption by the RBI-was around Rs 2.5 trillion

RBI, Reserve Bank of India
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The weighted average call rate settled at 5.27 per cent on Tuesday. The repo rate currently stands at 5.50 per cent. (| Image: Bloomberg)

Anjali Kumari New Delhi

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The Reserve Bank of India (RBI) will conduct a 7-day variable rate reverse repo (VRRR) auction worth ₹1 trillion on Friday to suck excess liquidity in the banking system, due to which the weighted average call rate (WACR) is trading below the policy repo rate
 
“On a review of the current and evolving liquidity conditions, it has been decided to conduct a variable rate reverse repo (VRRR) auction on Friday, June 27,” the central bank said on Friday.
 
“Further, on a review of evolving liquidity conditions, it has been decided not to conduct the 14-day main operation on Friday, June