Archive · 30 Sep 2025
RBI to Keep Call Rate as Policy Anchor
The Reserve Bank of India (RBI) is changing how it handles money in the market.
They'll keep using the overnight interest rate as the main target.
The current symmetric system remains in place.
The RBI will now use 7-day auctions to manage short-term money flow instead of the 14-day operations, while continuing with long-term methods.
Banks must still keep at least 90% of their required cash every day.
These changes come after getting feedback from banks and other stakeholders.
RBI to continue using overnight WACR as the operating target.
Existing symmetric corridor system remains in place.
SDF and MSF are 25 bps from repo rate.
14-day VRR/VRRR operations will be discontinued.
7-day VRR/VRRR auctions to manage short-term liquidity.
- Who
- Reserve Bank of India (RBI)
- What
- Revised liquidity management framework
- When
- Announced Tuesday
- Where
- India
- Why
- To manage short-term liquidity and ensure orderly market rates.
- Operating Target
- Overnight WACR
- Corridor System
- Symmetric, retained
- SDF/MSF
- 25 bps on either side of repo rate
- VRR/VRRR Operations
- 7-day tenor primary
- CRRs
- Minimum 90% daily
