Now Reading: RBI mops up Rs 80,170 crore via VRRR, announces bigger 3-day auction
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RBI mops up Rs 80,170 crore via VRRR, announces bigger 3-day auction
The Story in Brief
The Story in Brief
The Reserve Bank of India on August 14 announced a three-day Variable Rate Reverse Repo (VRRR) auction for Rs 1.5 lakh crore, citing evolving liquidity conditions. The auction will be held from 9:30 am to 10:00 am, with reversal on August 17.
A day earlier, the RBI conducted a one-day VRRR for a notified amount of Rs 1 lakh crore, receiving bids worth Rs 80,170 crore at a cut-off rate of 5.24 per cent. The central bank accepted all offers received.
The Indian Opinion
The undersubscription of the one-day VRRR may lead some to claim banks are resisting lower rates, but the RBI's swift move to a larger, longer auction shows it is managing surplus liquidity without forcing rates. The real test will be the cut-off rate of the three-day auction on August 17.
Sources (2): rbi.org.in, rbi.org.in (2)
This story was synthesised by AI from the 2 sources linked above. Methodology and corrections.
Updated: this story now draws on 2 sources.
Ashin Xavier: interesting
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