RBI Ends Daily VRR Auctions as Liquidity Turns Surplus
Why in the news
After reviewing easier liquidity conditions, RBI said daily VRR auctions would stop from Wednesday, June 11, 2025.
Key facts
- Daily VRRs began on January 16, 2025 to handle tight short-term liquidity.
- Demand was weak: banks bid ₹3,711 crore against ₹25,000 crore notified on June 9.
- Size and frequency of daily and 14-day VRRs had already been trimmed.
- SDF balances averaged ₹2 trillion in April-May.
June 6 policy
- Repo cut by 50 bps; stance moved from accommodative to neutral.
- CRR down by 100 bps in four tranches from September, to 3%.
Durable liquidity since January: ₹9.5 trillion
| Route | Amount |
|---|---|
| Open Market Operations | ₹5.2 trillion |
| Long-term VRRs | ₹2.1 trillion |
| USD/INR buy-sell swaps | ₹2.2 trillion |