Mumbai, March 16 The Reserve Bank of India (RBI) announced on Monday that it will conduct a seven-day variable rate repo (VRR) auction worth Rs 1.50 lakh crore on March 17.
The auction will take place between 9:30 AM and 10:00 AM on March 17, and the reversal of these funds will take place on March 24, 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 2.08 lakh crore.
The RBI has injected Rs 3.50 lakh crore of durable liquidity into the banking system through open market purchases (OMPs) of government securities since January 2026.
In the recent months, the RBI has been injecting large amounts of liquidity into the banking system to keep overnight rates under control. This has resulted in overnight rates remaining sharply below the repo rate.
Furthermore, a large supply of liquidity is also expected to help ease the pressure of outflows from the banking system due to advance tax and goods and services tax, scheduled this month.