New Delhi, Sept. 7 -- The Reserve Bank of India (RBI) has announced another liquidity withdrawal operation on 7 September. It will hold an overnight variable rate reverse repo (VRRR) auction worth Rs.5 trillion. This followed weak participation in a longer auction aimed at withdrawing Rs.7 trillion.

Banks offered only Rs.2.59 trillion in that auction, which allowed early redemption. Five traders blamed technical problems for the weak response, according to ET.

One trader said a platform change prevented some banks from participating.

"The bidding for the VRRR was changed to another platform, as E-Kuber, the usual one, had some technical issues, and hence some banks were caught unaware and were not able to participate," ET quoted the tr...