RBI to hold INR 500-bln, 3-day VRRR auction 0930-1000 IST Tue
This story was originally published at 20:19 IST on 28 July 2025
Register to read our real-time news.Informist, Monday, Jul. 28, 2025
--RBI to hold 3-day VRRR auction on Tue
--RBI to hold 3-day VRRR auction for INR 500 bln 0930-1000 IST Tue
MUMBAI – The Reserve Bank of India will hold a three-day variable rate reverse repo auction for INR 500.00 billion between 0930 IST and 1000 IST Tuesday, the central bank said in a press release Monday. The reversal of the tender will take place Friday.
The auction will be conducted on the RBI's core banking solution platform e-Kuber. Successful bids will be accepted at their respective bid rates. Bids at or above the repo rate of 5.50% will be rejected, the RBI said. The central bank last conducted a seven-day, INR 1.25-trillion variable rate reverse repo auction Friday, which is also scheduled to be reversed Friday.
Money market traders were not expecting the RBI to conduct a variable rate reverse repo auction before the commencement of month-end inflows, and money market rates could rise in early trade Tuesday following the announcement. However, with no major outflows scheduled for the day and the government's month-end spending expected to commence Wednesday, the rise in money market rates could be limited.
The RBI Sunday net absorbed INR 2.48 trillion of liquidity from the banking system, which is a proxy for the systemic liquidity surplus. As per the latest RBI data, the banking system liquidity is in excess of 1% of banks' net demand and time liabilities, the level that RBI Governor Sanjay Malhotra had identified as comfortable for interest rate-cut transmission. According to latest data, 1% of NDTL would put the liquidity surplus around INR 2.33 trillion. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Srijita Bose
Edited by Nishant Maher
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
