{"id":2093,"date":"2022-01-24T11:32:13","date_gmt":"2022-01-24T11:32:13","guid":{"rendered":"https:\/\/rvkassociates.com\/blog\/?p=2093"},"modified":"2022-01-24T11:32:16","modified_gmt":"2022-01-24T11:32:16","slug":"rbi-conducts-variable-repo-rate-auction-of-%e2%82%b975000-crore","status":"publish","type":"post","link":"https:\/\/rvks.in\/blogs\/rbi-conducts-variable-repo-rate-auction-of-%e2%82%b975000-crore\/","title":{"rendered":"RBI conducts variable repo rate auction of \u20b975,000 crore"},"content":{"rendered":"\n<p><a>RBI has been continuously doing VRRR auctions to remove this excess liquidity from the banking system<\/a><\/p>\n\n\n\n<p>The central bank received bids worth\u00a0\u20b91.37 lakh crore compared to the notified amount of\u00a0\u20b975,000 crore<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Mumbai: The Reserve Bank of India on Monday conducted another round of variable repo rate auction of\u00a0\u20b975,000 crore to augment the liquidity shortfall in the system.<\/p>\n\n\n\n<p>The central bank received bids worth\u00a0\u20b91.37 lakh crore compared to the notified amount of\u00a0\u20b975,000 crore.\u00a0<\/p>\n\n\n\n<p>While the cut-off rate was fixed at 4.12%, the weighted average rate came in at 4.13%.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">Dealers expect this shortfall to reverse on Tuesday as nearly\u00a0\u20b92.49 trillion worth of liquidity is expected to come into the system after the 28-day and 7-day variable reverse repo rate (VRRRs) mature. Another\u00a0\u20b94.35 trillion will come into the system after the 14-day VRRR matures on Friday.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">The banking system has been in a liquidity surplus mode since June 2019. The liquidity surplus widened significantly and averaged\u00a0\u20b97.7 trillion last year.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">RBI has been continuously doing VRRR auctions to remove this excess liquidity from the banking system. A reverse repo is a rate at which RBI borrows money from banks. RBI borrows a part of this money at a fixed rate and some of it at variable rate.<\/p>\n\n\n\n<p class=\"has-text-align-justify\">In its 8 December policy, RBI Governor Shaktikanta Das said it is looking at a scenario where there will be no overnight fixed rate reverse repo and 14-day VRRR will be the main instrument for liquidity management.<\/p>\n\n\n\n<p><strong>Source Link :<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.livemint.com\/news\/india\/rbi-conducts-variable-repo-rate-auction-of-rs-75-000-crore-11643019812000.html\">https:\/\/www.livemint.com\/news\/india\/rbi-conducts-variable-repo-rate-auction-of-rs-75-000-crore-11643019812000.html<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>RBI has been continuously doing VRRR auctions to remove this excess liquidity from the banking system The central bank received bids worth\u00a0\u20b91.37 lakh crore compared to the notified amount of\u00a0\u20b975,000 crore Mumbai: The Reserve Bank of India on Monday conducted another round of variable repo rate auction of\u00a0\u20b975,000 crore to augment the liquidity shortfall in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1767,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,98],"tags":[101],"class_list":["post-2093","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-news","tag-news"],"_links":{"self":[{"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/posts\/2093","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/comments?post=2093"}],"version-history":[{"count":1,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/posts\/2093\/revisions"}],"predecessor-version":[{"id":2094,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/posts\/2093\/revisions\/2094"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/media\/1767"}],"wp:attachment":[{"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/media?parent=2093"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/categories?post=2093"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/tags?post=2093"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}