India, Sept. 15 -- The Reserve Bank of India (RBI) absorbed Rs 3.93 lakh crore from the banking system through a variable rate reverse repo (VRRR) auction on Tuesday, amid surplus liquidity in the banking system.
The central bank received bids worth Rs 3,93,352 crore against the notified amount of Rs 5 lakh crore and accepted the entire amount at a cut-off and weighted average rate of 5.24%.
The RBI has been conducting VRRR auctions over the past month to absorb excess liquidity and help align overnight money market rates with the policy repo rate.
Published by HT Digital Content Services with permission from Dion Global Solutions Limited....