RBI conducts 4-day VRRR auction as overnight rates fall below repo

The Reserve Bank of India (RBI) on Monday did a four-day variable rate reverse repo (VRRR) auction to reduce liquidity in the banking system as the overnight money market rates fell below the repo rate, said market participants. Photograph: Francis Mascarenhas/Reuters The repo rate is 6.50 per cent. Banks parked Rs 18,750 crore at the auction against a notified amount of Rs 50,000 crore at a weighted average rate of 6.49 per cent. At the previous VRRR auction on Friday, banks had put in Rs ...