India’s central bank said on Thursday it will conduct a seven-day variable rate reverse repo (VRRR) auction worth 2.5 trillion rupees ($29.17 billion) on July 11, higher than the 1 trillion rupees it auctioned last week.
The Reserve Bank of India added that it will not conduct the 14-day main operation on July 11 after reviewing liquidity conditions.
The RBI had withdrawn 973 billion rupees through a two-day VRRR on July 9, which will also mature on Friday.
RBI’s liquidity withdrawal move weighs on India bond prices
The central bank sucks out liquidity from the banking system using reverse repos and infuses it using repos.
Liquidity in the country’s banking system stood at a surplus of 3.27 trillion rupees as of July 9, up from 2.62 trillion rupees at June-end, data from the RBI showed.
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