RBI absorbs Rs 1.5 lakh crore via 8-day VRRR auction at 5.49%

The Reserve Bank of India (RBI) on Thursday absorbed Rs 1,50,023 crore through an 8-day Variable Rate Reverse Repo (VRRR) auction as part of its liquidity management operations. The auction, held on September 4, 2025, had a notified amount of Rs 1.5 lakh crore. Banks tendered bids worth Rs 1,80,955 crore, of which the central bank accepted Rs 1,50,023 crore. The cut-off rate and weighted average rate were both set at 5.49%, with partial acceptance of 81.9% at the cut-off. This comes close on the heels of RBI’s earlier operations, including a three-day VRRR on September 1 where Rs 48,820 crore was absorbed, and a six-day VRRR on August 29 where Rs 1,38,366 crore was taken in against a notified Rs 1.5 lakh crore. The RBI has been actively deploying VRRR auctions of varying maturities to drain surplus liquidity, which has risen on account of government spending and capital inflows. The central bank aims to keep short-term money market rates aligned with the policy repo rate, which currently stands at 5.50%.