RBI 3-day VRR auction injects Rs 25,101 crore
Why in the news
To handle short-term liquidity needs, the central bank ran a three-day VRR operation on 20 March 2026 and put a sizeable amount into the system.
Key facts
- Amount injected: ₹25,101 crore.
- Operation: 3-day Variable Rate Repo (VRR) auction.
- Date: 20 March 2026.
- Purpose: manage short-term liquidity conditions.
Concepts compared
| Tool | Meaning |
|---|---|
| Variable Rate Repo (VRR) | Short-term tool; banks borrow from RBI at a market-determined, auction-based rate; handles temporary mismatches |
| Standing Deposit Facility (SDF) | Banks park surplus funds with RBI without collateral; floor of the liquidity corridor |
| Open Market Operations (OMO) | RBI buys or sells government securities; adds or absorbs durable, long-term liquidity |
Exam angle
- Amount: ₹25,101 crore; tenor: 3 days.
- VRR rate is set by auction.
- SDF needs no collateral and forms the corridor floor.
- OMO deals with durable liquidity.