​Variable Rate Repo Auction (VRR)

  • On 23rd December, 2024, the Reserve Bank of India (RBI) conducted a seven-day variable rate repo auction (VRR) for an amount of Rs 1.50 lakh crore.
  • 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 or absorbing excess liquidity when there is a surplus.
  • 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 ....
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