The Reserve Bank of India (RBI) has announced daily variable rate repo (VRR) auctions on all working days in Mumbai to address the prevailing liquidity crunch in the banking system.

• The auctions, starting Friday(17 January 2025), will initially offer Rs 50,000 crore and continue until further notice.
• The banking system's liquidity deficit has surpassed Rs 2 trillion in recent days, reaching Rs 2.09 trillion on Tuesday and peaking at Rs 2.5 trillion on Monday.
• The situation is expected to worsen with goods and services tax (GST) outflows later this month.