The Reserve Bank of India (RBI) has announced the continuation of daily Variable Rate Repo (VRR) auctions, conducted on all working days in Mumbai. The measure, aimed at managing liquidity in the financial system, will involve a reversal of funds on the next working day.
As part of this initiative, the RBI has decided to set the notified amount for the VRR auction on Monday, January 27, 2025, at ₹2,00,000 crore. This move follows the announcement made on January 15, 2025, as per the Press Release 2024-2025/1933. The auctions will remain in place until further notice, with the central bank closely monitoring liquidity conditions to determine subsequent auction amounts.
These VRR auctions are a critical tool for short-term liquidity management, allowing financial institutions to access funds while ensuring stability in the banking system.