RBI turns to longer-dated VRRR for liquidity mop-up

In an effort to control escalating inflation, the Reserve Bank of India is running auctions to draw in surplus liquidity from the financial system. This move comes as call money rates fall beneath the policy repo rate, with predictions indicating liquidity levels could exceed fifteen lakh crore by the close of September. Additionally, the central bank recently sold government securities worth thirty-two thousand crore.

This story was originally reported by Economic Times — Markets. As an automated real-time news aggregator, NewsToolBar provides multi-perspective indexing and AI summarization while directing full readership directly to primary publisher sources.