VRRR Auction
The VRRR Auction refers to the Variable Rate Reverse Repo Auction. It is a monetary policy tool used by central banks. This auction allows banks to park excess funds with the central bank at a variable interest rate. It helps manage liquidity in the economy. The process influences short-term interest rates and stabilises the financial system. It is crucial for economic stability.
The Reserve Bank of India (RBI) withdrew ₹2 lakh crore liquidity through a Variable Rate Reverse Repo (VRRR) auction. The operation was conducted to absorb excess funds from...
April 17, 2026