Banks park ₹3.53 lakh crore in RBI overnight auction after weak 30-day bidding
On September 7, banks demonstrated tepid interest in the RBI's 30-day variable rate reverse repo (VRRR) auctions, with bids falling short of notified amounts. However, a subsequent overnight auction attracted stronger participation, signalling a clear preference among banks for shorter-duration fund parking options.
The contrasting response indicates liquidity management choices in the banking system, with institutions opting for more flexible, near-term placement rather than committing funds for longer periods.
