RBI’s variable rate repo auction worth Rs 1 lakh crore to start today

The Reserve Bank of India (RBI) will be conducting a variable rate repo (VRR) auction for a notified amount of Rs 1 lakh crore for six days starting today.

The auction is being held between 10:30 am and 11:00 am and reversal of these funds will take place on June 27. “On a review of current and evolving liquidity conditions, the Reserve Bank of India has decided to conduct a Variable Rate Repo (VRR) auction on June 21, 2024, Friday,” the Central Bank said in a release.

The RBI usually conducts variable rate repo auctions to inject liquidity in the banking system when it turns into deficit mode.

As of now, as per RBI’s data, liquidity in the banking system is estimated to be in deficit of around Rs 1.56 lakh crore.

Earlier, the central bank received bids for drawing funds aggregating Rs 1,35,514 crore from banks against the notified amount of Rs 75,000 crore at the 14-day variable rate repo auction.