Why does RBI drain cash overnight? The VRRR auction under LAF that Prelims economy questions test
RBI conducts an overnight Variable Rate Reverse Repo auction
ಸುದ್ದಿಯಲ್ಲಿ ಏಕೆ? RBI uses a VRRR auction to mop up surplus liquidity.
ಪ್ರಿಲಿಮ್ಸ್ The Liquidity Adjustment Facility includes repo and reverse repo operations through which RBI manages day-to-day liquidity.
ಮೇನ್ಸ್ GS3 Economy (monetary policy): surplus liquidity can weaken transmission of the policy rate and fuel inflation, so RBI uses LAF tools such as VRRR auc…


















