Do you know that Repo auction framework is different from Repo rate?

Repo rate is the rate at which the RBI lends shotterm money to the banks against the security of all SLR-eligible transferable Government of India- dated Securities, Treasury Bills and State Development Loans (SDL). The repo auction framework is a new regime for liquidity management to keep overnight rates close to the repo rate. Under this scheme, the Apex bank takes the auction route to sell part of the cash balances of the Government to fill liquidity in the system.
The auction amount, if any, will be decided by RBI based on an assessment of the liquidity conditions as well as government cash balances available for auction for the day. RBI might also decide to increase the auction amount based on the developing liquidity conditions during the day. There will be regular rollovers of maturing 7 days, 14-days term repos on every Tuesday and Friday. The daily variable rate term repo auction will be conducted between 9:30 and 10:30 AM from Monday to Friday. Under the repo auction framework, Banks are eligible to borrow under auction to the extent of 0.75% of their net demand and time liabilities (NDTL).
In addition,  RBI continues to provide liquidity under overnight repos of 0.25 percent of bank-wise NDTL at the existing LAF repo rate (6.75%)

Click for related articles: (i) What is bank rate? (ii) What is Marginal Standing Facility, (iii) CRR and SLR: How they affect on bank credits.(iv) Effects of Repo rate, Reverse repo rate changes