RBI absorbs Rs 1.5 lakh crore via 3-day VRRR auction

The Reserve Bank of India (RBI) on Friday (12 September 2025) absorbed Rs 1,50,015 crore through a three-day Variable Rate Reverse Repo (VRRR) auction, conducted as part of its ongoing liquidity management operations. The auction had a notified amount of Rs 1.5 lakh crore, against which banks tendered bids worth Rs 1,50,804 crore. The central bank accepted nearly the entire amount, with a marginal partial allotment at the cut-off. The cut-off rate stood at 5.49%, while the weighted average rate came in at 5.48%. This comes after the RBI absorbed Rs 20,175 crore through a two-day VRRR auction on 10 September, and Rs 1.5 lakh crore via an 8-day VRRR on 4 September. The central bank has been actively conducting such operations of varying maturities to drain surplus liquidity, which remains elevated on account of government spending and capital inflows. The RBI aims to keep short-term money market rates aligned with the policy repo rate, which is currently at 5.50%.