RBI Announces ₹1.50 Lakh Crore 7-Day VRR Auction On March 17
Last Updated: 17th March 2026 - 11:35 am
Summary:
The Reserve Bank of India is planning a 7-day VRR auction for an amount of ₹1.50 lakh crores on March 17, with the current level of liquidity in the banking system being an estimated surplus of ₹2.08 lakh crores.
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The Reserve Bank of India is planning a 7-day VRR auction for an amount of ₹1.50 lakh crores on March 17, 2026, as a part of its liquidity management operations, as per an official release from the Reserve Bank of India.
The auction is scheduled to be conducted between 9:30 AM and 10:00 AM on March 17, with the reversal of funds scheduled for March 24, 2026.
Liquidity Conditions In Banking System
The central bank stated that the auction has been announced based on current and evolving liquidity conditions. System liquidity is estimated to be in surplus of around ₹2.08 lakh crore, as per the RBI release.
Since January 2026, the RBI has infused ₹3.50 lakh crore of durable liquidity into the banking system through open market operations involving the purchase of government securities.
Measures To Manage Short-Term Rates
The liquidity infusion measures have been undertaken to manage short-term interest rates in the money market. Data from the central bank shows that overnight rates have been trading below the repo rate in recent months.
Tax-Related Outflows This Month
The RBI noted that liquidity conditions are also being managed in view of expected outflows from the banking system due to advance tax and goods and services tax payments scheduled in March.
The planned VRR auction is part of the central bank’s ongoing liquidity operations aimed at managing surplus funds in the banking system while ensuring orderly conditions in money markets.
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