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Banks Hold Back From RBI’s ₹7 Lakh Crore VRRR Auction, Participation Stays Muted Despite Liquidity Glut

Banks Hold Back From RBI’s ₹7 Lakh Crore VRRR Auction, Participation Stays Muted Despite Liquidity Glut
Photo: Free Press Journal · view original

Mumbai: The Reserve Bank of India's 30-day variable rate reverse repo (VRRR) auction received a tepid response from banks, with bids falling significantly short of the notified amount, despite surplus liquidity across the banking system. A VRRR auction is a monetary policy tool used by a central...

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