The Reserve Bank of India (RBI) on Friday conducted two Variable Rate Reverse Repo (VRRR) auctions of six-day and three-day tenures, mopping up a total of Rs 1.59 lakh crore from the banking system against the notified Rs 3 lakh crore.
The three-day VRRR auction saw bids worth Rs 13,045 crore against the notified Rs 1 lakh crore, with the RBI accepting the entire amount at a cut-off rate of 5.49% and a weighted average rate of 5.48%.
The six-day VRRR auction received bids of Rs 1,46,044 crore against the notified Rs 2 lakh crore, with the entire amount accepted at a cut-off rate of 5.49% and a weighted average rate of 5.49%.
The VRRR auctions form part of the RBI’s liquidity absorption operations to manage surplus funds in the banking system.