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RBI to conduct ₹50,000 overnight variable rate repo auction
September 24, 2022
“On a review of current liquidity conditions, the Reserve Bank of India has decided to conduct a Variable Rate Repo auction on September 22,” the central bank said in a release on September 21.
The auction will begin between 10.30-11 am on September 22, 2022, and the tenure is one day. The date of reversal is on September 23, 2022 (Friday), RBI said.
The RBI has been rebalancing the surplus liquidity in the system by shifting it out of the fixed rate overnight reverse repo window into the variable rate reverse repo (VRRR) auctions of longer maturity.
As per the operational guidelines, the auction will be conducted on CBS (e-Kuber) platform and the minimum bid amount for the auction would be ₹1 crore and multiples thereof. The allotment would be in multiples of ₹1 crore, the RBI said.
The apex bank said banks would be required to place their bids in percentage terms up to two decimal places and banks can place multiple bids. Successful bids will get accepted at their respective bid rates.
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