New Delhi, Sept. 19 -- The Reserve Bank of India (RBI) absorbed Rs 2.23 lakh crore from the banking system on Friday through a variable rate reverse repo (VRRR) auction as surplus liquidity remained elevated.

The central bank received and fully accepted bids worth Rs 2,22,629 crore against the notified amount of Rs 2.25 lakh crore. The funds were accepted at a weighted average rate of 5.24 per cent, the RBI said.

Banking Liquidity Surplus At Rs 6.94 Lakh Crore

The RBI has been conducting VRRR auctions since last month to absorb excess liquidity and keep overnight money market rates aligned with the repo rate, reported PTI.

As of September 17, liquidity in the banking system was estimated at around Rs 6.94 lakh crore in surplus, accord...