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RBI to Hold ₹2 Lakh Crore VRRR Auction October 8
The Reserve Bank of India plans to hold an auction on October 8.
Banks can place money with the RBI through this auction for 29 days.
The RBI plans to accept up to ₹2 lakh crore.
This is meant to take some extra money out of the banking system for a while.
The money is scheduled to be returned on November 6.
Banks may ask to get some or all of their money back sooner.
They must use the E-Kuber portal and follow the RBI’s deadlines.
The RBI said the decision followed a review of liquidity conditions.
The Reserve Bank of India will conduct a 29-day variable rate reverse repo auction on October 8.
The notified auction amount is ₹2 lakh crore, intended to absorb surplus liquidity from the banking system.
Bidding is scheduled from 9:30 a.m. to 10 a.m., and the funds are set to be returned on November 6.
The RBI estimated that banking-system liquidity was in surplus by about ₹4.99 lakh crore on October 7.
Participants can request full or partial premature reversal through the E-Kuber portal, subject to the RBI’s timing rules.
- Who
- The Reserve Bank of India and participants in the VRRR auction.
- What
- A 29-day variable rate reverse repo auction for a notified amount of ₹2 lakh crore.
- Where
- The auction will be conducted through the RBI; premature reversal requests can be made through the E-Kuber portal.
- When
- The auction is scheduled for October 8, from 9:30 a.m. to 10 a.m.; reversal is scheduled for November 6.
- Why
- To absorb surplus liquidity from the banking system, following the RBI’s review of current and evolving liquidity conditions.
Key facts
- Auction type
- 29-day variable rate reverse repo (VRRR)
- Notified amount
- ₹2 lakh crore
- Auction date
- October 8
- Auction window
- 9:30 a.m. to 10 a.m.
- Scheduled reversal
- November 6
- Estimated liquidity surplus
- About ₹4.99 lakh crore as of October 7
- Premature reversal
- Full or partial reversal requests are allowed through E-Kuber on working days, at least two working days before the original reversal date.
Sources
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