<ul data-eligibleForWebStory="false"><li>The RBI accepted ₹1.51 lakh crore in bids at a 7-day VRRR auction, falling short of the notified ₹2.5 lakh crore, indicating banks' reluctance to park large amounts for longer durations.</li><li>Experts suggest that banks prefer shorter-term options like 1-3 day VRRRs, with intermittent participation in longer tenors, especially in the current scenario of surplus liquidity in the banking system.</li><li>Market analysts anticipate the RBI to continue using tools like VRRRs to manage excess liquidity until a more balanced liquidity position is achieved, despite the marginal impact of recent VRRR auctions on money markets.</li><li>Given the surplus liquidity of ₹3.15 lakh crore in the banking system, the RBI's adjustment of the 7-day VRRR amount to ₹2.5 lakh crore signifies a cautious approach to mitigating inflation risks while supporting credit growth and public spending.</li></ul>

RBI accepts ₹1.51 lakh crore in bids at 7-day VRRR auction, short of the notified ₹2.5 lakh crore

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