"banking-system"

The Reserve Bank of India has announced a Rs 2 lakh crore seven-day VRRR auction on April 17 to manage surplus liquidity in the banking system. The move comes ahead of GST-related outflows that typically tighten liquidity. Governor Shaktikanta Das reiterated the RBI’s proactive stance on liquidity management.

RBI signals its cautious approach to balance the twin factors of inflation and growth

Markets have adapted and even welcomed the VRRR in view of the higher remuneration it offers relative to the fixed rate overnight reverse repo.