What is the primary reason for the RBI’s decision to increase the amount in the 7-day VRR auction on Dec 22

ExamLookup

Current Affairs : December 2023

What is the primary reason for the RBI’s decision to increase the amount in the 7-day VRR auction on Dec 22

A. Surging inflation

B. Liquidity deficit in the banking system

C. Declining interest rates

D. Government budget surplus

Solution

B. Liquidity deficit in the banking system