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Big Money is Cutting Down Risk

The coming week is noteworthy as the RBI is expected to mop up over ₹50,000 crore in a variable rate reverse repo (VRRR) operation for 14 days. The VRRR will be reversed on 10 March, and the bidders can quote up to the repo rate of return. March is the final month of the Indian financial year. Banks routinely borrow from each other to balance their books in the inter-bank call money markets.
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