Mumbai, April 16 (IANS) The Reserve Bank of India (RBI) on Thursday announced it will conduct a Rs 2 lakh crore seven-day variable rate reverse repo (VRRR) auction on April 17 to manage surplus liquidity in the banking system.In a notification, the central bank said the decision comes in view of the prevailing transient surplus liquidity conditions.The auction will be held between 9:30 am and 10:00 am on Friday, with funds scheduled to be reversed on April 24.The move is aimed at absorbing exces…
Latest Liquidity Management News & Updates
Mumbai, April 10 (IANS) The Reserve Bank of India announced on Friday that it is carrying out a Variable Rate Reverse Repo (VRRR) auction worth Rs 2 lakh crore with a 7-day tenor to absorb excess, durable liquidity from the banking system. The date of reversal is April 17.The VRRR is used to absorb excess liquidity when the system has a surplus, which helps maintain interest rates within the RBI’s prescribed corridor.This move follows the RBI’s revised liquidity management framework, which prior…