Home / Economy / News / RBI to hold 14-day variable rate repo auction for Rs 1 trillion on Friday

RBI to hold 14-day variable rate repo auction for Rs 1 trillion on Friday

The sharp squeeze in liquidity has pushed up money market rates, with the 364-day treasury bills selling at yields above the 10-year paper's on Wednesday

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The central bank has said it would continue to resort to variable rate repo and reverse repo as and when necessary to help the market tide over temporary mismatches in the liquidity conditions

Reuters Mumbai

2 min read Last Updated : Mar 09 2023 | 6:06 PM IST

The Reserve Bank of India (RBI) will conduct a 14-day variable rate repo (VRR) auction on March 10 to inject up to 1 trillion rupees ($12.19 billion) into the banking system, it said in a release on Thursday.

This will be only the second VRR auction conducted by the RBI since February 2020. The previous VRR auction was conducted on Feb 10 for Rs 50,000 crore.

The liquidity deficit in the banking system had widened to over Rs 70,000 crore in February, with the daily average liquidity also slipping into deficit on a monthly basis for the first time since May 2019.

Although

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Topics : Reserve Bank of India RBI

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