Overview

• RBI discontinued 14-day VRR/VRRR as the primary transient-liquidity operation in a revised framework released Tuesday.
• Short-term liquidity will be steered mainly through seven-day variable-rate repo and reverse-repo auctions, with flexible tenors from overnight to 14 days.
• The overnight weighted average call rate remains the operating target within an unchanged symmetric corridor set 25 bps around the policy repo.
• The RBI will give at least one day’s notice for liquidity operations, with scope for same-day announcements when conditions require.
• Durable-liquidity tools such as OMOs, long-term VRR/VRRR and forex swaps, plus the rule to maintain at least 90% of CRR daily, continue unchanged, reflecting Internal Working Group recommendations and stakeholder feedback.