Banks park ₹2 lakh crore in RBI's VRRR auction
On a recent Friday, the RBI ran a seven-day Variable Rate Reverse Repo (VRRR) auction and got bids worth a whopping ₹2.08 lakh crore—accepting ₹2 lakh crore at a 5.49% rate.
Even though banks already had extra cash lying around, they jumped in, showing just how active and strategic they're being right now.
Why banks are parking money
Banks weren't just parking money for fun—they're thinking ahead.
With a liquidity surplus on hand and GST payments coming up soon, this move was all about smart planning to keep things running smoothly.
RBI's goal with these auctions
RBI Governor Sanjay Malhotra wants interest rates in the market to match policy rates more closely.
These VRRR auctions help make that happen—the average call rate is staying close to the policy rate of 5.50%.
It's all part of keeping money flowing predictably and markets steady.