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Variable Rate Reverse Repo Auctions (VRRRs)
July 21 , 2023
546 days
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- After a gap of almost a month, the Reserve Bank of India announced a 14-day variable rate reverse repo (VRRR) operation.
- Variable rate reverse repo (VRRR) auctions are a tool used by the Reserve Bank of India (RBI) to manage the amount of money in the banking system.
- The VRRR is usually undertaken to reduce surplus liquidity by withdrawing existing cash in the system.
- The RBI conducts these auctions to absorb excess money from banks when there is too much liquidity.
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