RBI absorbs Rs 2.23 lakh cr via variable rate reverse repo auction

MUMBAI: (Sep 18) The Reserve Bank of India (RBI) on Friday absorbed Rs 2.23 lakh crore from the banking system amid surplus liquidity by conducting a variable rate reverse repo (VRRR) auction.

The central bank received bids worth Rs 2,22,629 crore, which it accepted fully, for a notified amount of Rs 2.25 lakh crore. The amount was accepted at a weighted average rate of 5.24 per cent, the RBI said in a release.

The RBI has been conducting VRRR auctions since last month in order to absorb excess liquidity from the banking system and align the overnight money market rates to the repo rate.