 "RBI, Reserve Bank of India")
The Reserve Bank of India’s (RBI’s) 43-day variable rate repo (VRR) auction saw tepid demand from investors, receiving bids worth ₹25,431 crore against the notified amount of ₹1.5 trillion.
Additionally, the central bank also purchased ₹40,000 crore worth of government securities via open market operations (OMO) auction.
“The VRR auction did not see much demand because the money market rates have fallen below 6 per cent, and it does not make sense to pay 6.01 per cent, when overnight rates are trading at 5.80 per cent,” said a dealer at a primary dealership.
The net liquidity in the banking system
