RBI doubles 10-day VRR amount to ₹1.5 trn due to expected tax outflows

The Reserve Bank of India has doubled the notified amount of the 10-day variable rate repo (VRR) auction, scheduled for Tuesday, to Rs 1.5 trillion from Rs 75,000 crore, the central bank said on Monday.

 

“On a review of current and evolving liquidity conditions, it has been decided to increase the notified amount for the 10-day VRR auction,” RBI said in a release.

 

Market participants said the decision to double the VRR amount was due to outflows due to advance tax and goods and services tax (GST) collections, expected to be Rs 2 trillion.

 

Usually, for every quarter-end, advance tax