RBI to conduct overnight VRR auction of Rs 75,000 cr on January 24

The Reserve Bank of India on Monday said it will be conducting an overnight variable rate repo auction under liquidity adjustment facility (LAF) for an amount of Rs 75,000 crore today. The date of reversal is on January 25, 2022, the central bank said in a release.

According to the operational guidelines, the auction will be conducted on CBS (e-Kuber) platform and the minimum bid amount would be Rs 1 crore and multiples thereof. The allotment would be in multiples of Rs 1 crore.

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The banks can place multiple bids in percentage terms up to two decimal places. Bids at or below the repo rate will be rejected.

On January 20, the RBI had conducted an overnight variable rate repo (VRR) auction of Rs 50,000 crore. The central bank had said it will continue to rebalance liquidity conditions in a non-disruptive manner while maintaining adequate liquidity to meet the needs of the productive sectors of the economy.