07-September-2026
Economy News
 
RBI's liquidity test may set future course
07-Sep-2026

The outcome of the 30-day variable rate reverse repo (VRRR) auction to absorb ?7 lakh crore will be a key determinant of how the Reserve Bank of India (RBI) manages the record ?10.5 lakh crore of liquidity generated by the FCNR(B) scheme. Market participants said the central bank may have to deploy additional tools, such as a sell-buy dollar swaps and bond sales through open market operations (OMOs), along with more VRRRs to sterilise the large liquidity injection.

News Source:- https://economictimes.indiatimes.com/news/economy/finance/rbis-liquidity-test-may-set-future-course/articleshow/133850114.cms