The Reserve Bank of India announced that based on a review of current and evolving liquidity conditions, it decided to conduct Variable Rate Repo (VRR) auctions on all working days in Mumbai with reversal taking place on the next working day until further notice. Standalone primary dealers will be allowed to participate in these auctions, along with all other eligible participants.
The auction amount will be decided by the Reserve Bank, based on assessment of the liquidity conditions, and will be announced separately. The first such auction was conducted on January 16 in the amount of ₹50,000 crore ($5.8bn) and ₹1,25,000 crore the next business day.