RBI VRR auctions: RBI injects over Rs 1.5 lakh crore via VRR auctions, buybacks
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Mumbai: The Reserve Bank of India (RBI) Thursday conducted two overnight variable rate repo (VRR) auction in addition to a pre-announced buyback as liquidity deficit persisted in the banking system. On Thursday, RBI injected more than ₹1.45 lakh crore via two overnight variable rate repo (VRR) auctions and a buyback operation of ₹9,666 crore. The RBI will conduct a similar VRR auction on Friday for ₹2 lakh crore, along with a 14- day auction for ₹1.75 lakh crore, maturing on February 7. The two VRR auctions for ₹1.25 lakh crore and ₹50,000 crore each on Thursday were conducted as system liquidity saw a large deficit of ₹2.87 lakh crore on Wednesday, likely pressured by monthly GST outflows. Daily average deficit in January stood at ₹1.75 lakh crore. The first auction which had a notified amount of ₹1.25 lakh crore saw bids worth ₹1.69 lakh crore, while the second auction for ₹50,000 crore saw bids worth ₹20,668 crore, showing that demand ...