The Reserve Bank of India (RBI) on Friday (22 August 2025) absorbed Rs 75,781 crore through a 7-day Variable Rate Reverse Repo (VRRR) auction, tightening liquidity in the banking system.
Against a notified amount of Rs 1,25,000 crore, banks tendered bids worth Rs 75,781 crore, all of which were accepted. The cut-off rate stood at 5.49%, with the weighted average rate also at 5.49%.
The operation came a day after the RBI mopped up Rs 31,025 crore via an overnight VRRR at 5.51% and followed the 3-day auction on 18 August where Rs 23,360 crore was absorbed.
The series of back-to-back liquidity absorption measures highlight the central bank’s active liquidity management to keep short-term money market rates aligned with the policy repo rate and to deal with temporary surplus liquidity from government spending and capital flows.