RBI to conduct Rs 75,000 cr 3-day Variable Rate Reverse Repo auction on March 4

Reserve Bank of India

The Reserve Bank of India (RBI) on March 1 said it will conduct three-day variable rate reverse repo (VRRR) auction worth Rs 75,000 crore on March 4.

“On a review of the current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Reverse Repo (VRRR) auction on March 04.” the RBI said in a release.

The auction will take place between 10:30 AM and 11:00 AM. The reversal of these funds will take place on March 7.

In the last few days, the central bank has conducted three VRRR auctions to remove excess liquidity from the banking system.

This was despite the liquidity in the banking system being in deficit of around Rs 88,698.39 crore.

The liquidity deficit has narrowed in this week due to inflows on account of month-end government spending towards salaries and pensions.