<p>Mumbai: The Reserve Bank of India (RBI) will conduct a 7-day variable rate repo (VRR) auction for 1 trillion rupees ($12 billion) on Dec. 15 in place of the usual 14-day variable rate reverse repo (VRRR) auction, it said in a release on Thursday.</p>.<p>"The 14-day VRRR auction conducted on December 1, 2023 and subscribed for 224.68 billion rupees is maturing and allowed to be reversed on December 15, 2023," the RBI said.</p>.<p>"Furthermore, in view of likely outflows from the banking system on account of advance tax and GST (goods and services tax) payments, it has been decided to conduct a 7-day Variable Rate Repo auction on December 15, 2023, Friday, in lieu of the main operation," it added.</p>.Wholesale price inflation in negative zone for 5th month in a row.<p>This marks the first such VRR auction since June 19 when the RBI chose to infuse short-term funds to stop overnight cash rates from rising above the Marginal Standing Facility (MSF) rate.</p>.<p>Banking system liquidity has stayed in a deficit mode since Dec. 6 and stood at 387 billion rupees on Wednesday.</p>.<p>The weighted average interbank call money rate was at 6.76 per cent on Thursday while the weighted average tri-party repo or TREPS rate was at 6.75 per cent, in line with the MSF rate of 6.75 per cent.</p>
<p>Mumbai: The Reserve Bank of India (RBI) will conduct a 7-day variable rate repo (VRR) auction for 1 trillion rupees ($12 billion) on Dec. 15 in place of the usual 14-day variable rate reverse repo (VRRR) auction, it said in a release on Thursday.</p>.<p>"The 14-day VRRR auction conducted on December 1, 2023 and subscribed for 224.68 billion rupees is maturing and allowed to be reversed on December 15, 2023," the RBI said.</p>.<p>"Furthermore, in view of likely outflows from the banking system on account of advance tax and GST (goods and services tax) payments, it has been decided to conduct a 7-day Variable Rate Repo auction on December 15, 2023, Friday, in lieu of the main operation," it added.</p>.Wholesale price inflation in negative zone for 5th month in a row.<p>This marks the first such VRR auction since June 19 when the RBI chose to infuse short-term funds to stop overnight cash rates from rising above the Marginal Standing Facility (MSF) rate.</p>.<p>Banking system liquidity has stayed in a deficit mode since Dec. 6 and stood at 387 billion rupees on Wednesday.</p>.<p>The weighted average interbank call money rate was at 6.76 per cent on Thursday while the weighted average tri-party repo or TREPS rate was at 6.75 per cent, in line with the MSF rate of 6.75 per cent.</p>