The Reserve Bank of India (RBI) on Monday mopped up Rs 48,820 crore through a three-day Variable Rate Reverse Repo (VRRR) auction, as part of its ongoing liquidity management operations.
The auction, held on 1 September 2025, had a notified amount of Rs 50,000 crore. Banks tendered bids worth Rs 48,820 crore, all of which were accepted. The cut-off rate and the weighted average rate were both set at 5.49%.
The latest operation comes after the central bank absorbed Rs 1,38,366 crore in a six-day VRRR on 29 August 2025, against a notified amount of Rs 1.5 lakh crore, at the same cut-off rate. A day before that, RBI had mopped up Rs 49,515 crore through an overnight VRRR auction.
The RBI has been conducting frequent VRRR auctions of varying maturities to manage surplus liquidity arising from government spending and capital inflows. These measures aim to ensure that short-term money market rates remain closely aligned with the policy repo rate, which currently stands at 5.50%.