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RBI Holds Variable Rate Reverse Repo Auction to Manage Liquidity

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The Reserve Bank of India will conduct a four-day VRRR auction to withdraw excess liquidity from the banking system. This comes after the recent 14-day auction received a muted response from banks due to heavy expected outflows. The RBI Governor has indicated flexibility to meet the economy's needs, and experts predict no repo rate changes at the upcoming MPC meeting.

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