Descriptive Prep: Brajesh Mohan

Bond traders in India are very sensitive to RBI’s liquidity actions right now. Whenever the RBI uses certain liquidity tools (especially VRRR auctions), markets interpret it as a signal that RBI may tighten liquidity or monetary policy. Because of this: Even routine liquidity operations may cause bond yields to rise sharply. So RBI is being extra cautious in using its liquidity tools to avoid alarming the market. In short: Markets are overreacting to RBI liquidity actions → RBI is managing liquidity more carefully to avoid panic. Liquidity in the Banking System: Liquidity means how much cash is available in the banking system for lending and transactions. — If liquidity is high: Banks can borrow easily, Interest rates fall, Financial conditions become easier — If liquidity is low: Borrowing becomes expensive, Interest rates rise, Financial conditions tighten The RBI currently maintains surplus liquidity. Weighted Average Call Rate (WACR): The WACR is the interest rate at which banks borrow overnight funds from each other in the interbank market. This is the operating target of RBI’s monetary policy. RBI tries to keep WACR close to the policy repo rate. Example in the article: Repo Rate = 5.25% and WACR = 5.07% Difference ≈ 18 basis points RBI usually allows about 10–15 bps deviation. Variable Rate Reverse Repo (VRRR): VRRR is a liquidity absorption tool. Banks park excess funds with RBI through auctions. Purpose: Remove temporary excess liquidity and Push short-term rates upward toward repo rate Important point: VRRR does NOT mean monetary tightening, but markets sometimes interpret it that way. Why Bond Traders Get Nervous? Bond prices and yields move opposite to each other. If traders think RBI will tighten liquidity: Interest rates may rise, Bond yields rise and Bond prices fall. So traders react strongly to any signal suggesting tightening. Even a single VRRR auction may trigger: selling of bonds and rise in yields This is why the article says traders are “jittery.”

Essay: Active Vs Passive Euthanasia: Discuss Its Pros and Cons.

Explained: How the Supreme Court allowed passive euthanasia for Harish Rana 🔍 🧑‍💻 RUNDOWN AI 📆March 12, 2026 at 06:20AM

Explained: How the Supreme Court allowed passive euthanasia for Harish Rana 🔍 🧑‍💻 RUNDOWN AI 📆March 12, 2026 at 06:20AM

Oil well explosion impact: What the 1991 Gulf War can teach us about today’s Iran crisis 🔍 🧑‍💻 RUNDOWN AI 📆March 11, 2026 at 06:12PM

Oil well explosion impact: What the 1991 Gulf War can teach us about today’s Iran crisis 🔍 🧑‍💻 RUNDOWN AI 📆March 11, 2026 at 06:12PM

What is the Essential Commodities Act, invoked by the Centre amidst the West Asian crisis? 🔍 🧑‍💻 RUNDOWN AI 📆March 11, 2026 at 05:28PM

US - Iran War and Gas Crisis and How it is impacting LPG in India. The conflict involving Iran and the Israel-US is beginning to impact India’s energy market, with natural gas and LPG supplies tightening as disruptions in the Strait of Hormuz affect global shipments. India relies heavily on imported gas to meet domestic demand.

Buy PIB 360 (Programs and RBI Circulars) Magazine - February 2026 https://www.affairstap.com/2026/03/buy-pib-360-programs-and-rbi-circulars.html

Our RBI Grade B 2026 Course Highlights — One on One Sessions/Personalized Guidance from Mentor (Brajesh Mohan) — Weekly Doubt Clearing Sessions. — Batch Wise Study Group guided by Mentor. — Daily Check List Based Study Plan & Progress Tracking — Detailed Notes for Phase 2 (ESI, FM, Answer Writing, English Descriptive) — Answer Writing Classes, Tests with Evaluation — 10 Phase 1 FLT, 40 Sectional Test (10 Each) for Phase I — 15 Phase 2 Full Length Mock Tests (5 Each) — 50 Chapter Wise/Topic Tests for ESI, FM — 3 Magazines for Current Affairs, Programs, Circulars and Explainers. — Monthly Top 100 Questions based on Current Affairs — Mock Interview & Interview Guidance Sessions ✅RBI Grade B Phase II 2026 Mentorship Program @ Rs.2999/- (Accessible till 2026 Exam) Link: https://courses.edugrade.in/learn/RBI-Grade-B-Mentorship-Program-BM

Essay Topics from PIB: Development of Rural Tourism Promotion of Eco-Tourism Promotion of MICE Tourism Promotion of Medical Tourism

Courses for Banking and Regulatory Exams by Brajesh Mohan (EduGrade Learning) We are running Ten Courses for Banking and Regulatory Exams (Above 8 + 2 Courses for SEBI Grade A - Mentorship and Mock Test), also there is One E-book Course. You can access our Course through Following Link and directly check the Bundle Section. https://courses.edugrade.in/learn