RBI absorbs ₹1.41 trn surplus liquidity via VRRR, announces fresh auction | Finance News
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Separately, the RBI announced that it will conduct a two-day VRRR auction on Tuesday. The auction will have a notified amount of ₹1.75 trillion | Image: Bloomberg
The Reserve Bank of India conducted two variable rate reverse repo (VRRR) auctions on Monday, mopping up a combined ₹1.41 trillion from the banking system, as it continued efforts to manage surplus liquidity.
In the seven-day VRRR auction, the RBI notified an amount of ₹2.5 trillion, against which it received bids worth ₹91,980 crore, all of which were accepted. The cut-off and weighted average rates for the auction stood at 5.24 per cent.
A separate overnight VRRR auction had a notified amount of ₹1.5 trillion, with total offers received and accepted at ₹49,206 crore. This auction, too, was cleared at a cut-off and weighted average rate of 5.24 per cent.
Separately, the RBI announced that it will conduct a two-day VRRR auction on Tuesday. The auction will have a notified amount of ₹1.75 trillion.
A VRRR auction is a liquidity absorption tool used by the RBI to temporarily absorb surplus liquidity from the banking system.
Net liquidity in the banking system was in a surplus of ₹3.4 trillion on Sunday, the latest data from the central bank showed.
The weighted average call rate (WACR) — which is the operating target of monetary policy — settled at 5.19 per cent, flat against the previous close.
The standing deposit facility (SDF) rate, which currently stands at 5 per cent, is the interest rate at which banks park their surplus funds with the RBI without providing collateral. It forms the lower bound of the RBI’s policy corridor, with the repo rate in the middle and the marginal standing facility (MSF) rate at the upper bound.
First Published: Aug 24 2026 | 9:02 PM IST
