Context
With the banking system liquidity slipping into a deficit, the Reserve Bank of India (RBI) will conduct an overnight variable rate repo auction (VRRR) for Rs 50,000 crore.
About
What is Variable rate repo auction?
|
What is the role of RBI?
Analysis
Why there is a need for auctioning the rate repo?
Liquidity Adjustment Facility (LAF) is a tool used in monetary policy by the RBI that allows banks to borrow money through repurchase agreements (repos) or for banks to make loans to the RBI through reverse repo agreements. |
Factors affecting inflow of money
What will happen after auctioning VRRR?
Suggestive measures
More Articles
Verifying, please be patient.