The Reserve Bank of India absorbed over Rs 3.53 lakh crore through an overnight VRRR auction to drain excess banking-system liquidity. The operation comes amid strong FCNR(B) inflows, with the special forex swap facility attracting $73 billion in foreign exchange nflows.
The Reserve Bank of India (RBI) will conduct a 30-day Variable Rate Reverse Repo (VRRR) auction worth Rs 7 lakh crore on September 7, 2026, to absorb excess liquidity in the banking system, which currently stands at over Rs 10.32 lakh crore. Participants will have the option of premature reversal through the E-Kuber portal, while the RBI continues to step up liquidity absorption.
The Reserve Bank of India has announced a Rs 2 lakh crore seven-day VRRR auction on April 17 to manage surplus liquidity in the banking system. The move comes ahead of GST-related outflows that typically tighten liquidity. Governor Shaktikanta Das reiterated the RBI’s proactive stance on liquidity management.
