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RBI Absorbs Rs 71,971 Crore via Overnight VRRR Auction Amidst Huge Surplus Liquidity
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CNBC TV18•23-09-2026, 00:23
RBI Absorbs Rs 71,971 Crore via Overnight VRRR Auction Amidst Huge Surplus Liquidity
  • •The Reserve Bank of India (RBI) absorbed Rs 71,971 crore from the banking system through an overnight variable rate reverse repo (VRRR) auction.
  • •The central bank fully accepted bids worth Rs 71,971 crore against a notified amount of Rs 75,000 crore at a cut-off and weighted average rate of 5.24 per cent.
  • •RBI has been conducting VRRR auctions to absorb surplus liquidity and align overnight money market rates to the repo rate.
  • •Banking system liquidity is estimated to be in surplus of around Rs 4.92 lakh crore as of September 21.
  • •The RBI also conducted open market operations (OMO) selling government securities worth Rs 75,000 crore to drain rupee liquidity, with another Rs 25,000 crore OMO sale scheduled for September 28.
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Key Questions Answered

The Reserve Bank of India absorbed Rs 71,971 crore from the banking system through an overnight variable rate reverse repo auction amid a huge liquidity surplus.

The central bank announced Open Market Operation sales totalling Rs 1 lakh crore across three tranches, executing sales worth Rs 50,000 crore on September 17 and Rs 25,000 crore on September 21, with the final Rs 25,000 crore tranche scheduled for September 28.

The banking system experienced heavy liquidity due to massive mobilisation of FCNR (B) deposits by banks, which brought foreign currency into the system followed by swaps with the RBI, alongside month-end government expenditures like salaries and pensions.

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