"variable-rate-reverse-repo"

The Reserve Bank of India absorbed over Rs 3.53 lakh crore through an overnight VRRR auction to drain excess banking-system liquidity. The operation comes amid strong FCNR(B) inflows, with the special forex swap facility attracting $73 billion in foreign exchange nflows.

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