The Reserve Bank of India (RBI) will conduct daily variable rate repo (VRR) auctions on all working days in Mumbai in order to boost banking system liquidity. 

The VRR auctions will be conducted between 10:00 a.m. and 10:30 a.m. every day and will be reversed the following day. 

The first such daily auction will begin on 16 January for an amount of Rs 50,000 crore. Standalone primary dealers will be allowed to participate in the auction with other eligible bidders. 

According to the latest data, the liquidity deficit in the banking system was at Rs 2.09 lakh crore as of 14 January. 

On Wednesday, RBI conducted a five-day VRR auction with a notified amount of Rs 75,000 crore, and banks had submitted bids worth Rs 3,980 crore. This is in contrast to its four-day VRR auction on Monday, with a notified amount of Rs 50,000 crore, which received total bids worth Rs 86,155 crore.