RBI plans short-term VRRR to manage surplus liquidity
pre-market1 source ↓written by the desknot a recommendation
- under the Standing
- ₹4.78 lakh crore
The Reserve Bank of India (RBI) is set to announce a short-tenor VRRR auction to absorb excess liquidity from the banking system. Currently, banks have parked ₹4.78 lakh crore under the Standing Deposit Facility, indicating limited credit demand. This move aims to align the overnight call rate closer to the policy repo rate and stabilize money market rates.
Not investment advice. For informational purposes only.