Mumbai, July 25 -- The Reserve Bank of India (RBI) on Friday, July 25, successfully concluded its 7-day Variable Rate Reverse Repo (VRRR) auction, absorbing liquidity worth Rs 1,25,008 crore from the banking system. The notified amount for the auction was Rs 1,25,000 crore, while total bids received amounted to Rs 1,42,264 crore, indicating strong participation from market participants.

The cut-off rate was set at 5.49%, with the weighted average rate virtually unchanged at 5.48%. Bids at the cut-off rate saw a partial acceptance ratio of 73.60%, reflecting healthy demand for the RBI's short-term liquidity facility.

The VRRR auction is a key liquidity management tool deployed by the central bank to remove surplus funds from the banking ...