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Starting Jan 16, India's RBI begins daily VRR auctions to inject ₹50,000 crore in liquidity.
The Reserve Bank of India (RBI) will start daily Variable Rate Repo (VRR) auctions from January 16 to inject liquidity into the banking system, addressing a liquidity deficit estimated at about ₹2 lakh crore.
The first auction is for ₹50,000 crore, with amounts for subsequent auctions based on daily liquidity needs.
This move follows a reduction in the cash reserve ratio (CRR) to 4.0%, releasing ₹1.16 lakh crore in primary liquidity.
Despite these measures, economists suggest more substantial steps are needed to prevent spikes in call rates.
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A partir del 16 de enero, el RBI de la India comienza subastas diarias VRR para inyectar 50.000 millones de rupias en liquidez.