Mumbai, September 23, 2026 (Yes Punjab News)
The Reserve Bank of India (RBI) absorbed Rs 75,026 crore from the banking system through an overnight variable rate reverse repo (VRRR) auction on Wednesday as it continued efforts to manage surplus liquidity and keep short-term money market rates aligned with the policy repo rate.
According to the RBI, the auction attracted strong demand from banks, with bids worth Rs 87,993 crore received against the notified amount of Rs 75,000 crore.
The central bank accepted bids worth Rs 75,026 crore. The cut-off rate and weighted average rate for the auction stood at 5.24 per cent.
The move comes as liquidity conditions in the banking system remain comfortable. RBI data showed that surplus liquidity stood at around Rs 4.45 lakh crore as of September 22, prompting the central bank to continue using liquidity absorption tools to moderate excess cash in the financial system.
The RBI has been conducting a series of VRRR auctions since last month to absorb surplus funds from banks and keep overnight rates closer to the benchmark repo rate.
The central bank has also supplemented these measures through open market operation (OMO) sales of government securities. As part of its liquidity management strategy, the RBI conducted OMO sales worth Rs 50,000 crore on September 17 and another Rs 25,000 crore on September 21.
Under an OMO sale, banks and other investors purchase government securities from the central bank, resulting in a withdrawal of rupee liquidity from the banking system.
The RBI had earlier announced OMO sales totalling Rs 1 lakh crore in three tranches to address prevailing liquidity conditions. The final tranche of Rs 25,000 crore is scheduled for September 28.
Analysts said liquidity in the banking system has been boosted by substantial mobilisation of Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits by banks.
The inflows brought foreign currency into the system, while subsequent swaps with the RBI injected rupee liquidity into banks. Government spending on salaries, pensions and other month-end expenditures has also contributed to higher liquidity levels.
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