The Reserve Bank of India (RBI) announced that it will conduct a 56-day Variable Rate Repo (VRR) auction on Friday, February 7, 2025. This move, as per the RBI’s earlier notification (Press Release 2024-2025/2013 dated January 27, 2025), is part of the central bank’s ongoing liquidity management operations.
The auction will offer a notified amount of ₹50,000 crore, with the tenor set at 56 days. The bidding window will be open from 3:30 PM to 4:00 PM on February 7, 2025. The funds will be reversed on April 4, 2025, marking the maturity of the operation.
Standalone Primary Dealers, along with other eligible participants, are allowed to participate in the auction. The operational guidelines for this VRR auction will remain consistent with those outlined in the RBI’s Press Release 2021-2022/1572 dated January 20, 2022.
The VRR mechanism is a key tool in the RBI’s monetary policy framework, allowing the central bank to manage short-term liquidity in the banking system efficiently. This auction is expected to provide banks with additional liquidity support while ensuring stability in the money markets.