Overview

• The RBI’s last daily VRR auction of Rs 25,000 crore took place on June 10 before the program’s suspension.
• System liquidity reached a surplus of Rs 2.45 lakh crore as of June 8, reducing reliance on short-term funding operations.
• The 100 basis point CRR cut will be implemented in four tranches by December 2025 to release Rs 2.5 lakh crore of lasting liquidity.
• Dealers reported that declining bids in VRR auctions reflected abundant overnight market funds and ample bank liquidity.
• Some market participants anticipate the RBI will continue 14-day VRR operations even after ending daily auctions.