The Reserve Bank of India (RBI) on 22 September 2025 absorbed Rs 21,151 crore through a one-day Variable Rate Repo (VRR) auction, conducted as part of its liquidity management operations.
Against a notified amount of Rs 1,00,000 crore, banks tendered bids worth Rs 21,151 crore, all of which were accepted. The cut-off rate stood at 5.51%, while the weighted average rate was also 5.51%.
This came after the RBI conducted 3-day and 6-day VRR auctions on 19 September. In the 3-day auction, bids of just Rs 390 crore were received against a notified Rs 50,000 crore, while the 6-day auction drew Rs 59,967 crore against a notified Rs 1,00,000 crore. Both were allotted in full at a cut-off rate of 5.51%.
The operations follow a series of liquidity absorption measures earlier this month, including Rs 25,006 crore absorbed through a one-day VRR auction on 18 September, Rs 1,50,015 crore in a three-day VRRR on 12 September, Rs 20,175 crore in a two-day VRRR on 10 September, and Rs 1.5 lakh crore via an eight-day VRRR on 4 September.
The RBI has been actively using VRR and VRRR auctions of varying maturities to drain surplus liquidity from the banking system, arising from government spending and capital inflows, and to keep short-term money market rates aligned with the policy repo rate of 5.50%.