The Reserve Bank of India (RBI) today absorbed 75,026 crore rupees from the banking system through an overnight Variable Rate Reverse Repo (VRRR) auction, amid surplus liquidity. The RBI absorbed the liquidity at a cut-off and weighted average rate of 5.24 per cent.
According to RBI data, as on 22nd September, liquidity in the banking system was in surplus of 4.45 trillion rupees. The RBI has been conducting VRRR auctions to absorb excess liquidity and align overnight money market rates with the repo rate. The central bank has also conducted open market operations (OMO) sales of government securities worth 50,000 crore rupees on 17th September and 25,000 crore rupees on 21st September.
The remaining 25,000 crore rupees tranche is scheduled for 28th September. The RBI had announced total OMO sales of one trillion rupees in three tranches to manage liquidity conditions.
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