RBI Announces ₹25,000 Crore Overnight VRR Auction, Will Banks Borrow More Despite Surplus Liquidity?

Mumbai: The Reserve Bank of India (RBI) will conduct a Rs 25,000 crore overnight Variable Rate Repo (VRR) auction on Wednesday, July 8, to manage short-term liquidity in the banking system. The move comes after the central bank reviewed the current and evolving liquidity conditions and decided that additional liquidity support may be required. The auction will take place between 9:30 am and 10:00 am under the Liquidity Adjustment Facility (LAF). Banks that borrow funds through this auction will have to repa