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.
What is Variable rate repo auction?
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What is the role of RBI?
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
Verifying, please be patient.