RBI to conduct Rs 1 lakh crore 14-day VRRR on July 14

Reserve Bank of India

The Reserve Bank of India (RBI) on July 13 said it will conduct 14-day variable rate reverse repo (VRRR) auction for a notified amount of Rs 1 lakh crore on July 14.

The auction for the same will take place between 10:30 AM and 11:00 AM, and reversal of these funds will take place on July 28.

“On a review of the current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Reverse Repo auction on July 14,” the RBI said in a release.

Usually, the central bank conducts VRRR auctions to remove surplus liquidity from the banking system.

Currently, the liquidity in the banking system is estimated to be in surplus of around Rs 1.81 lakh crore, according to the RBI’s money market operation.

Since the start of this month, the central bank has conducted six VRRR auctions to remove surplus liquidity from the system.