Mumbai, September 7, 2026 (Yes Punjab News)
The Reserve Bank of India (RBI) on Monday absorbed more than Rs 3.53 lakh crore of excess liquidity from the banking system through an overnight Variable Rate Reverse Repo (VRRR) auction, according to a central bank statement.
Against the notified amount of Rs 5 lakh crore, banks submitted bids totalling Rs 3,53,390 crore. The RBI accepted the entire amount, equivalent to more than 70 per cent of the notified amount.
The bids were accepted at a cut-off rate and weighted average rate of 5.24 per cent, the RBI said.
A VRRR auction is a monetary policy instrument used by the central bank to absorb excess funds from the banking system and help maintain financial stability.
The RBI has intensified liquidity absorption operations following substantial inflows into the banking system under the special FCNR(B) deposit scheme.
The RBI’s special dollar-rupee forex swap facility for FCNR(B) deposits, Overseas Foreign Currency Borrowings (OFCB) and External Commercial Borrowings (ECB), launched on June 8 this year, has resulted in foreign exchange inflows of around $73 billion in less than 11 weeks.
FCNR(B) deposits alone accounted for $65.40 billion, reflecting the strong response from Non-Resident Indians to the scheme.
The mobilisation has surpassed the scale of the RBI’s 2013 FCNR(B) swap scheme, which raised around $26 billion over approximately three months. The latest exercise, with $73 billion mobilised in less than 11 weeks, has been described as the largest and fastest foreign-currency mobilisation exercise undertaken by India.
The strong response also prompted the RBI to advance the closure of the FCNR(B) window from September 30 to August 31, after the scheme achieved its objective ahead of schedule.
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