The Reserve Bank of India (RBI) absorbed ₹75,026 crore from the banking system on September 22, 2026, through an overnight variable rate reverse repo (VRRR) auction, amid a backdrop of surplus liquidity.

Auction Details

The central bank received bids totaling ₹87,993 crore for a notified amount of ₹75,000 crore, but accepted only ₹75,026 crore. The bids were accepted at a cut-off and weighted average rate of 5.24 percent.

Context of Surplus Liquidity

The RBI has been conducting various VRRR auctions since last month to manage excess liquidity in the banking system and align overnight money market rates with the repo rate. As of September 22, liquidity in the banking system is estimated to be in surplus by approximately ₹4.45 trillion.

Open Market Operations

In addition to the VRRR auction, the RBI also conducted two open market operations (OMO) sales of government securities worth ₹50,000 crore on September 17 and ₹25,000 crore on September 21. Under an OMO sale, banks and other investors purchase government securities from the RBI, which helps drain rupee liquidity from the banking system.