RBI's Potential Use of VRRR Auctions to Manage Liquidity and Align Overnight Rates with Repo Rate

RBI's Potential Use of VRRR Auctions to Manage Liquidity and Align Overnight Rates with Repo Rate

Amid surplus liquidity, experts suggest that the RBI might conduct more Variable Rate Reverse Repo (VRRR) auctions to align overnight rates with the repo rate. This move aims to manage liquidity effectively and maintain stability in the financial markets…learn more

RBI's Liquidity Management Strategy Through VRRR Auctions

The Reserve Bank of India (RBI) initiated the fiscal year 2025 with four variable rate reverse repo (VRRR) auctions on April 2 and 3 to regulate liquidity, drawing mixed responses from banks. These actions aim to align the weighted average call rate with the repo rate…learn more

RBI's Liquidity Management Through Variable Rate Repo (VRR) Auctions

This topic explores the Reserve Bank of India's (RBI) strategy of managing liquidity fluctuations in the banking system through variable rate repo (VRR) auctions. It discusses the recent auction results, market demand, and the central bank's efforts to regulate short-term interest rates…learn more

RBI's 14-day VRRR Auction on April 5, 2024

The Reserve Bank of India (RBI) plans to conduct a 14-day Variable Rate Reverse Repo (VRRR) auction worth Rs 1.25-lakh crore on April 5, as reported by Moneycontrol…learn more