The Reserve Bank of India (RBI) has announced that it will conduct a second Overnight Variable Rate Repo (VRR) auction under the Liquidity Adjustment Facility (LAF) on January 23, 2025, Thursday. This move comes after a review of current and evolving liquidity conditions in the financial system.
The RBI has notified an auction amount of ₹50,000 crore with a tenor of 1 day. The auction window will open from 11:30 AM to 12:00 Noon on January 23, and the reversal of the transaction will take place on January 24, 2025, Friday.
The operational guidelines for this auction will be in line with those detailed in the RBI’s Press Release 2021-2022/1572 dated January 20, 2022.
This auction is part of the RBI’s ongoing efforts to manage liquidity in the market and ensure stability in the banking system.