Mumbai, March 18 The Reserve Bank of India (RBI) on Wednesday said it will conduct a three-day variable rate repo (VRR) auction worth Rs 75,000 crore on March 20.
The auction will take place between 9:30 AM and 10:00 AM on March 20, and the reversal of these funds will take place on March 23, according to the central bank's release.
The central bank announced the auction based on the current and evolving liquidity conditions of the banking system, the release added.
Currently, the liquidity in the banking system is estimated to be in excess of around Rs 81,963.69 crore. On March 17, the RBI injected Rs 48,014 crore of temporary liquidity into the banking system through a seven-day VRR auction.
Before this, the central bank had infused Rs 3.50 lakh crore of durable liquidity into the banking system through open market purchases (OMOs) of government securities.
In the recent months, the RBI has been infusing substantial liquidity into the banking system to keep overnight rates under control.