Mumbai, Jun 2 (PTI) The Reserve Bank of India (RBI) on Tuesday said it will conduct a two-day variable rate repo (VRR) auction of Rs 50,000 crore on June 3.
The auction will take place between 9:30 am and 10 am, and the reversal of these funds will take place on June 5.
“On a review of current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Repo (VRR) auction on Wednesday, June 03, 2026," the RBI said in a release.
Currently, liquidity in the banking system is estimated to be in surplus of around Rs 85,411.44 crore as of June 1, which has narrowed from a surplus of Rs 1.40 lakh crore on May 31.
VRR auction conducted by the RBI on Tuesday saw weak demand from banks despite lower surplus liquidity in the banking system.
The central bank received Rs 17,445 crore bids at the three-day VRR auction, against the notified amount of Rs 75,000 crore. The apex bank accepted the entire bids and injected Rs 17,445 crore of transient liquidity into the banking system at a cut-off and weighted average rate of 5.26 per cent, according to the RBI’s release. PTI MSU AA BAL BAL