On February 14, the RBI will hold a two-day variable rate repo auction
The central bank held two VRR auctions every day on February 7, 9, and 12 in order to increase liquidity thus far in February.
On February 13, the Reserve Bank of India (RBI) announced that on February 14, it would hold a two-day variable rate repo auction with a total value of Rs 25,000 crore.
"On review of the existing as well as emerging liquidity conditions, language proficiency has been decided to hold the Variable Rate Repo (VRR) auctioned on February 14," the RBI said in a press statement.
The time of the auction is 10:30 a.m. to 11:00 a.m. We will reverse these monies on February 16th.
In order to boost liquidity in the banking system when it is low or experiencing losses, the central bank often holds VRR auctions.
Approximately Rs 2.13 lakh crore is the current estimate of the liquidity gap in the banking sector.
The central bank held two VRR auctions every day on February 7, 9, and 12 in order to increase liquidity thus far in February.
Because of the tight liquidity circumstances, bank bids stayed above the stated amount in the majority of the auctions. In each auction, the central bank only took in a sum that was almost identical to the announced amount.
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