The Economic Times

RBI announces 26-day VRRR auction to absorb Rs 5 lakh crore surplus liquidity

The Reserve Bank of India plans a significant 26-day auction this Friday, targeting the withdrawal of Rs 5 lakh crore from the inter-bank market. This extended operation aims to manage persistent liquidity by giving participants the chance to reclaim lent amounts. This proactive measure is a direct response to the surplus liquidity caused by foreign investments.