Mumbai: The Reserve Bank of India will conduct a variable rate reverse repo (VRRR) operation on Friday, with an aim to absorb ₹1.25 lakh crore. This comes just after the RBI conducted a two day variable rate repo (VRR) operation and injected ₹50,000 crore into the banking system on Wednesday and an overnight VRR operation on Thursday.
The two day VRR operation was over-subscribed amid a temporary shortage of funds, which pushed call rates to 5.73% on Wednesday, 23 basis points above the repo rate.