RBI plans VRRR auction to manage liquidity
after close1 source ↓written by the desknot a recommendation
- under the Standing
- ₹4.78 lakh crore
- rate is trading
- 0.25% below the repo rate
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 offtake. The overnight call money rate is trading 0.25% below the repo rate, prompting the RBI to consider active liquidity management measures.
This move aims to align the call rate closer to the policy repo rate, potentially stabilizing the money market. Traders should monitor the impact on liquidity and interest rates in the coming days.
Not investment advice. For informational purposes only.