Amid Stable Liquidity, RBI Junks VRR Auction Third Time In A Row

Amid Stable Liquidity, RBI Junks VRR Auction Third Time In A Row

The move signifies the central bank’s trust in the structure’s fluidity

The Reserve Bank of India (RBI) has announced the cancellation of the 14-day variable rate repo (VRR) auction for the next fortnight, marking the third consecutive cancellation.

Meanwhile, the treasury officials have stated that the decision reflects the central bank's confidence in the banking system's liquidity, even with anticipated outflows of approximately Rs.3 lakh crore for advanced tax and the Goods and Services Tax (GST) payments in the next two weeks.