Even as the stock market rallied to new peaks, Reserve Bank of India (RBI) Governor Shaktikanta Das on Tuesday said the central bank will conduct fine-tuning operations to manage unanticipated and one-off liquidity flows.
This is being done to facilitate gradual restoration of the variable rate reverse repo (VRRR) as markets settle down to regular timings and functioning and liquidity operations normalise. “The Reserve Bank will also conduct fine-tuning operations from time to time as needed to manage unanticipated and one-off liquidity flows so that liquid conditions in the system evolve in a balanced and evenly distributed manner,” Das said at the annual FIMMDA-PDAI Conference.