The Reserve Bank of India (RBI) on Thursday (21 August 2025) conducted an overnight Variable Rate Reverse Repo (VRRR) auction, absorbing Rs 31,025 crore from the banking system. The notified amount for the 1-day auction was Rs 50,000 crore, but bids received totaled Rs 31,025 crore, all of which were accepted.
The cut-off rate was set at 5.51%, with the weighted average rate also at 5.51%. No partial allotment percentage was recorded, as all bids up to the accepted amount were fully absorbed.
The latest operation follows the 3-day VRRR conducted on 18 August 2025, where the RBI had accepted Rs 23,360 crore against a notified Rs 25,000 crore at a cut-off of 5.49%.
These back-to-back liquidity absorption measures are part of the RBI’s ongoing strategy to keep short-term rates aligned with the policy repo rate and to manage surplus funds in the banking system, which often arise from government spending and market flows.