The Reserve Bank of India (RBI) will conduct a 14-day Variable Rate Repo (VRR) auction for a notified amount of Rs 1.25 trillion on Friday. A repo auction is conducted by the central bank to inject liquidity into the banking system.
“On a review of current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Repo auction on May 17,” RBI said in a statement. The auction will be held between 10:30 am and 11 am and reversal of funds will take place on May 31.
The liquidity in the banking system is in deficit of around Rs 1.2 trillion, as per RBI’s latest data.