one18

Stories

Representational image (Image: News18)
N
News18•05-10-2026, 15:00
RBI Absorbs Rs 2.10 Lakh Crore via Two Overnight VRRR Auctions to Manage Surplus Liquidity
  • •The Reserve Bank of India absorbed Rs 210192 crore from the banking system through two overnight Variable Rate Reverse Repo auctions on Monday.
  • •The central bank accepted Rs 200050 crore in the first auction at a weighted average rate of 524 percent and fully accepted Rs 10142 crore in the second auction.
  • •The auctions aim to absorb excess surplus liquidity and align overnight money market rates with the repo rate.
  • •Banking system liquidity is currently estimated at a surplus of around Rs 516 lakh crore as of October 4.
  • •Surplus liquidity has been driven by FCNR B deposit inflows, related RBI currency swaps, and month-end government expenditures like salaries and pensions.
Read Full Article on News18 in English

Key Questions Answered

The Reserve Bank of India absorbed Rs 2,10,192 crore from the banking system through two overnight Variable Rate Reverse Repo auctions held on Monday.

As of October 4, data from the Reserve Bank of India estimates the liquidity surplus in the banking system to be around Rs 5.16 lakh crore.

The banking system has been flush with liquidity due to heavy mobilisation of FCNR(B) deposits and subsequent currency swaps with the RBI, alongside month-end government expenditures for salaries and pensions.

Similar Stories

RBI GDP outlook The Reserve Bank of India's Monetary Policy Committee (MPC) has revised its FY27 GDP growth forecast to 6.7% from 6.6%, citing stronger-than-expected economic performance in the first quarter. The central bank has projected Q1 FY27 growth at 7%, raised its Q2 forecast to 6.4%, while retaining its Q3 and Q4 projections at 6.5% and 6.8%, respectively. It has also estimated Q1 FY28 GDP growth at 7.3%. The RBI expects services, stable employment, robust credit growth and the government's infrastructure push to support growth, although uncertainty over the southwest monsoon, El Niño, geopolitics and global trade policy continues to pose risks.

RBI Absorbs Over Two Lakh Crore Rupees Via Overnight VRRR Auctions

C
CNBC TV18
RBI Absorbs Rs 71,971 Crore via Overnight VRRR Auction Amidst Huge Surplus Liquidity

RBI Absorbs Rs 71,971 Crore via Overnight VRRR Auction Amidst Huge Surplus Liquidity

C
CNBC TV18
The banking system was flushed with liquidity due to heavy mobilisation of FCNR (B) deposits by banks

RBI's Long-Term VRRR Auctions See Tepid Response as Banks Prefer Shorter Tenures

M
Moneycontrol
Poonam Gupta

Rupee to Stabilize, Appreciate as India's BoP Improves: RBI Dy Guv Poonam Gupta

M
Moneycontrol
RBI Sells ₹25,000 Crore G-Secs in OMO to Absorb Surplus Banking Liquidity

RBI Sells ₹25,000 Crore G-Secs in OMO to Absorb Surplus Banking Liquidity

C
CNBC TV18
Representational image (Image: News18)

RBI to conduct Rs 2 lakh crore 29-day VRRR auction on Oct 8

N
News18