RBI's 30-day VRRR operation sees muted response amid high banking liquidity surplus

Banks showed little interest in the Reserve Bank of India's 30-day reverse repo operation. This occurred even as banking system liquidity reached a near five-year high. Treasury heads avoided locking funds at the current interest rate. Many expected a future rate hike, seeking better returns. The Reserve Bank will conduct an overnight auction to manage liquidity.

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.