RBI’s Strategic Liquidity Infusion to Stabilize Money Markets:
The Reserve Bank of India (RBI) has conducted a series of Variable Rate Repo (VRR) auctions, infusing a substantial ₹76,000 crore into the financial ecosystem. This initiative aims to alleviate the liquidity deficit and stabilize short-term interest rates, particularly the call money rates, which had been trading above the RBI’s repo rate of 6.5%.
