​Variable Rate Repo (VRR)

  • On 21st June, 2024, the Reserve Bank of India (RBI) started conducting a variable rate repo (VRR) auction for a notified amount of Rs 1 lakh crore for six days.
  • The primary purpose of a Variable Rate Repo (VRR) auction conducted by the Reserve Bank of India (RBI) is to manage liquidity in the banking system.
  • This involves injecting short-term liquidity into the system when there is a deficit.
  • By conducting VRR auctions, the RBI aims to maintain financial stability and ensure that money market interest rates evolve systematically.
  • This helps in managing the overall liquidity conditions in the economy and supports the smooth ....
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