RBI Discontinues VRR Auctions As Liquidity Stabilises

RBI Discontinues Daily VRR Auctions as Bank Liquidity Improves

The central bank is ending daily liquidity injections via VRR auctions in response to data showing that banking system liquidity is now in surplus. The Reserve Bank of India (RBI) has discontinued daily variable rate repo (VRR) auctions as of Wednesday (11 June), citing improved liquidity conditions in the banking system. The daily VRR auctions, which inject short-term liquidity into banks, were introduced on 16 January in response to liquidity …

RBI to discontinue daily Variable Rate Repo auctions amid liquidity surplus - The Press United | International News Analysis, Viewpoint

The Reserve Bank of India (RBI) on Tuesday announced that it will discontinue daily Variable Rate Repo (VRR) auctions from June 11, 2025, in light of a growing liquidity surplus in the banking system, which currently stands at approximately ₹3 lakh crore. In a statement, the RBI said, “Further, on a review of current and evolving liquidity conditions, it has…

RBI To Discontinue Daily Variable Rate Repo From June 11

The Reserve Bank of India (RBI) announced on Tuesday that it will discontinue daily Variable Rate Repo (VRR) auctions starting June 11, 2025. The discontinuation of the VRR is due to a liquidity surplus in the banking system, which has reached approximately Rs 3 lakh crore. RBI said, “Further, on a review of current and evolving liquidity conditions, it has been decided that the daily VRR auctions, as announced in the above press release, will b…

RBI Discontinues VRR Auctions As Liquidity Stabilises

In a significant move in its liquidity management strategy, the Reserve Bank of India has discontinued its daily Variable Rate Repo auctions following an improvement in banking system liquidity.At the start of 2025, the RBI had been actively conducting daily and longer-tenor VRR auctions to inject short-term liquidity, responding to a period of tightness caused by tax outflows and heavy forex interventions. These auctions allowed banks to borrow…