Mumbai, Aug. 1 -- The Reserve Bank of India (RBI) on August 1 absorbed Rs 1,71,795 crore through a 7-day Variable Rate Reverse Repo (VRRR) auction, in continuation of its calibrated liquidity management strategy. This was against a notified amount of Rs 2,00,000 crore, with the entire amount of bids received being accepted.

The cut-off rate stood at 5.49%, matching the weighted average rate, underscoring stable bidding dynamics among participants. There was no partial acceptance at the cut-off rate, indicating that the demand was well within the central bank's comfort zone.

This operation marks another step in RBI's ongoing efforts to align money market rates with the policy repo rate, using short-tenor VRRR tools to drain surplus liqui...