RBI to conduct Rs 1 lakh crore overnight Variable Rate Reverse Repo auction

RBI

The Reserve Bank of India (RBI) on July 6 said it will conduct an overnight variable rate reverse repo auction for a notified amount of Rs 1 lakh crore. The auction will take place between 12.30 pm and 1 pm, and the reversal of these funds will take place on July 7.

This is the fourth consecutive reverse repo auction conducted by the central bank this week. This is because the liquidity in the banking system has risen sharply, prompting the central bank to remove surplus liquidity, dealers said.

The liquidity in the banking system is estimated to be in surplus of around Rs 2.35 lakh crore.

On July 6, the two-day reverse repo auction conducted by RBI on July 4 got reversed, where banks have parked Rs 67,295 crore.

Similarly, the central bank also conducted a two-day reverse repo auction, in which banks parked Rs 87,870 crore. This will also get reversed on July 7.