The Reserve Bank of India (RBI) conducted a daily variable rate repo (VRR) auction on April 11, 2025, where it received bids worth ₹143.17 billion against a notified amount of ₹250 billion. The cut-off rate for the auction was set at 6.01%.:
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Auction Details: The RBI allocated bids worth ₹143.17 billion, indicating a moderate response from banks despite the ongoing liquidity deficit.
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Cut-Off Rate: The cut-off rate of 6.01% reflects the current market conditions and the RBI's efforts to manage liquidity effectively.
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Liquidity Management: The RBI continues to use VRR auctions as a tool to manage liquidity in the banking system, addressing the persistent deficit.
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Market Sentiment: The response to the auction suggests that banks are cautious in their borrowing, possibly due to the current economic conditions and interest rate environment.
This auction is part of the RBI's broader strategy to stabilize the financial system and ensure adequate liquidity for banks.
Sources: RBI Official Press Release, Business Standard, Economic Times