RBI revives daily repos
17 January 2025 India
Image: Sanjeev/stock.adobe.com
The Reserve Bank of India (RBI) has revived its daily variable rate repo (VRR) auctions 鈥� previously replaced with a 14-day liquidity cycle by previous Governor Urjit Patel 鈥� due to what it calls 鈥渆volving liquidity conditions鈥�.
The auctions will take place on all working days in Mumbai, with the reversal taking place the following day. The first auction took place on 16 January, in the amount of 500 billion rupees (US$5.78 billion).
The auction amounts will be decided by the Reserve Bank based on an assessment of current liquidity conditions.
The news comes ahead of the Bank鈥檚 interest rate decision on 7 February.
The auctions will take place on all working days in Mumbai, with the reversal taking place the following day. The first auction took place on 16 January, in the amount of 500 billion rupees (US$5.78 billion).
The auction amounts will be decided by the Reserve Bank based on an assessment of current liquidity conditions.
The news comes ahead of the Bank鈥檚 interest rate decision on 7 February.
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