The Reserve Bank of India (RBI) on Thursday, 18 September 2025, absorbed Rs 25,006 crore through a one-day Variable Rate Repo (VRR) auction, conducted as part of its liquidity management operations.
The auction had a notified amount of Rs 25,000 crore against which banks tendered bids worth Rs 45,783 crore. The central bank allotted Rs 25,006 crore, with a partial allotment of 44.58% of bids received at the cut-off rate. The cut-off rate stood at 5.51%, while the weighted average rate came in at 5.52%.
This follows the RBI's absorption of Rs 1,50,015 crore in a three-day VRRR auction on 12 September, Rs 20,175 crore through 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 conducting such operations across different maturities to drain surplus liquidity arising from government spending and capital inflows. The objective is to keep short-term money market rates aligned with the policy repo rate, currently at 5.50%.