RBI Conducts Surprise VRR Auction
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In response to emerging liquidity pressures in the banking system, the Reserve Bank of India (RBI) conducted a surprise Variable Rate Repo (VRR) auction on July 23, 2025, injecting ₹50,000 crore into the system. This move highlights RBI’s dynamic approach to managing short-term liquidity. The Reserve Bank of India aims to keep the weighted average call rate (WACR) around the policy repo rate, which currently stands at 5.50%.