India, Sept. 7 -- The Reserve Bank of India's (RBI) Rs 7 lakh crore 30-day Variable Rate Reverse Repo (VRRR) auction received a tepid response from banks, with bids falling well short of the notified amount despite surplus liquidity in the banking system.
The RBI received Rs 2,59,276 crore worth of bids, against the notified amount of Rs 7 lakh crore, indicating relatively low participation from banks.
A VRRR auction is a monetary policy tool used by the central bank to absorb excess liquidity from the banking system.
Published by HT Digital Content Services with permission from Dion Global Solutions Limited....