June 24, 2025
India’s RBI Steps In to Calm Liquidity – Could This Be Big?
India’s Central Bank Launches $11.6B Reverse Repo Operation to Stabilize Markets – Here’s What You Need to Know Imagine you’re an investor or running a bank in Mumbai. Suddenly there’s too much money circling around—overnight interest rates drop too low—and it starts to break the system. That was the story earlier this week, until the Reserve Bank of India (RBI) took a bold step. On June 24, the RBI announced a seven-day variable rate reverse repo (VRRR) auction worth ₹1 trillion (about $11.6 billion), scheduled for June 27. The goal? Squeeze excess liquidity from the banking system and bring overnight call rates