Overview

• The RBI accepted ₹2 lakh crore of bids in its July 18 seven-day variable-rate reverse repo auction after receiving ₹2.08 lakh crore in subscriptions.
• Systemic liquidity surplus held around ₹3.1 lakh crore despite ongoing VRRR operations and a 100-basis-point CRR cut in June.
• The overnight call rate firmed toward the 5.50% repo rate, peaking at 5.40% before settling at 5.35%.
• Shorter-tenor VRRR auctions saw muted participation, with banks rolling over maturing funds and tapping the Tri-Party Repo Dealing and Settlement System to meet tax-driven outflows.
• The RBI is set to release a refreshed liquidity management framework by late July, cementing its shift to structured VRRR operations.