RBI Announces Variable Rate Repo Auction Amid Liquidity Surplus
The Reserve Bank of India (RBI) will conduct a seven-day variable rate repo auction on March 17 for Rs 1.50 lakh crore. The move, responding to the current liquidity surplus, aims to maintain control over overnight rates and ease fund outflow pressures due to tax payments.
- Country:
- India
The Reserve Bank of India (RBI) is set to conduct a seven-day variable rate repo (VRR) auction involving Rs 1.50 lakh crore on March 17. The auction, scheduled between 9:30 AM and 10:00 AM, marks an essential step by the central bank amid current liquidity conditions in the banking system.
As per the RBI's release, this auction is a response to the liquidity surplus, currently estimated at Rs 2.08 lakh crore. The bank aims to manage the evolving liquidity scenario through this measure. The funds' reversal is slated for March 24.
Since January 2026, the RBI has injected Rs 3.50 lakh crore of liquidity via open market purchases of government securities. This approach has kept overnight rates below the repo rate, while also helping alleviate fund outflow pressures due to upcoming tax payments.
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