Mumbai, September 18, 2026 (Yes Punjab News)
The Reserve Bank of India (RBI) absorbed Rs 2.23 lakh crore from the banking system through a Variable Rate Reverse Repo (VRRR) auction on Friday as it continued measures to manage surplus liquidity and keep short-term money market rates aligned with the policy repo rate.
According to the RBI, it received bids worth Rs 2,22,629 crore against the notified amount of Rs 2.25 lakh crore and accepted the entire amount. The funds were absorbed at a weighted average rate of 5.24 per cent.
The central bank has been conducting VRRR auctions since last month to drain excess liquidity from the banking system and ensure that overnight money market rates remain aligned with the repo rate.
RBI data showed that liquidity in the banking system was estimated to be in surplus by around Rs 6.94 lakh crore as of September 17.
The latest liquidity absorption operation came a day after the RBI sold government securities worth Rs 50,000 crore through an Open Market Operation (OMO) auction.
The central bank has also scheduled two additional OMO sales of Rs 25,000 crore each on September 21 and September 28 as part of its broader liquidity management measures.
Earlier this week, the RBI absorbed Rs 3.93 lakh crore through another VRRR auction. It had received bids worth Rs 3,93,352 crore against a notified amount of Rs 5 lakh crore and accepted the entire bid amount at a cut-off and weighted average rate of 5.24 per cent.
The banking system’s liquidity surplus was estimated at around Rs 10.73 lakh crore as of September 11. The subsequent decline to around Rs 6.94 lakh crore by September 17 indicates that surplus liquidity has moderated amid the RBI’s ongoing absorption measures.
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