RBI cancels VRR auction for third time amid stable liquidity

3 weeks ago 2

ET BureauLast Updated: Jun 13, 2025, 06:02:00 AM IST

Synopsis

The RBI has announced the cancellation of the 14-day variable rate repo (VRR) auction for the next fortnight, marking the third consecutive cancellation. This decision reflects the central bank's confidence in the banking system's liquidity, even with anticipated outflows of approximately ₹3 lakh crore for advanced tax and GST payments.

Mumbai: The RBI on Thursday said it will not conduct the 14-day variable rate repo (VRR) auction for the upcoming fortnight. This is the third such cancellation in a row.

"On a review of the current and evolving liquidity conditions, it has been decided not to conduct the 14-day main operation on Friday, June 13, 2025, for the upcoming fortnight," the central bank said.

Treasury officials said that cancellation indicates that the central bank is comfortable with the liquidity in the banking system despite scheduled outflows on account of advanced tax and GST payments in the next two weeks. These tax outflows are estimated to be around ₹3 lakh crore.

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