New Delhi, July 12 (Reporter) Reserve Bank of India or RBI, the country’s premier central bank, conducted a seven-day auction of Variable Rate Reverse Repo or VRRR. This auction is aimed at absorbing the surplus liquidity from the whole banking system. VRRR is an advanced monetary tool used by RBI policymakers to absorb the excess liquidity with the help of auctions. The RBI initiates this step to reduce the surplus liquidity from the banking system due to a surplus of almost Rs 4.04 lakh crore as per the latest data released by the RBI in July. Despite the previous measures taken by the RBI for liquidity absorption efforts, the system remained in surplus. RBI has pointed to the month-end government inflows, including the salary and pension disbursements, for this reason. RBI has also directed banks and financial institutions not to impose any pre-payment charges on the floating rate loans and advances. In this order, the Central bank also included the loans and advances taken by individuals or Micro and Small Enterprises (MSEs)...////...