Overview

• The three-day VRRR auction on July 15 attracted bids worth ₹57,450 crore against the notified ₹1 lakh crore, all accepted at a 5.49% cut-off rate.
• Systemic liquidity surplus has declined from around ₹4.25 lakh crore on July 4 to approximately ₹2.6–2.9 lakh crore by mid-July.
• Banks’ average deposits with the Standing Deposit Facility fell to near two-month lows, at about ₹1.32 lakh crore on July 13 compared with over ₹2.6 lakh crore in early June.
• The weighted average call money rate rose to roughly 5.44%, narrowing the gap to the 5.5% repo rate as VRRR operations lifted short-term rates.
• The RBI plans to continue VRRR operations to anchor overnight rates and will publish its updated liquidity management framework by late July.