RBI to Inject ₹1.50 Lakh Crore via 7-Day VRR Auction
Massive Liquidity Injection RBI announces ₹1.50 lakh crore Variable Rate Repo auction March 17 under Liquidity Adjustment Facility. Seven-day tenor with reversal scheduled March 24
Why VRR Now Manage advance tax, GST outflows expected mid-March. Keep overnight rates aligned with repo rate 5.25%. Banks bid competitively—market-determined interest rates, not fixed
Cumulative Support RBI infused ₹3.50 lakh crore durable liquidity via OMO G-Sec purchases since January 2026. Previous VRR auctions also injected short-term funds repeatedly
Overnight Rate Pressure WACR hovering 5.26%, near SDF floor 5.25%. TREPS rate at 5.13%. VRR prevents rates from falling too far below repo 5.25% corridor ceiling
Banking System Impact Eases year-end cash crunch. Government spending high, GST collections lower creating surplus. VRR provides flexible liquidity management tool beyond standing facilities or OMO purchases