Mumbai, Sept. 10 -- The Reserve Bank of India (RBI) on Wednesday absorbed Rs 20,175 crore through a two-day Variable Rate Reverse Repo (VRRR) auction conducted as part of its liquidity management operations.

The auction, held on 10 September 2025, had a notified amount of Rs 50,000 crore, but banks tendered bids worth only Rs 20,175 crore - all of which were accepted by the central bank. The cut-off rate and the weighted average rate stood at 5.49%.

The operation follows RBI's recent liquidity absorption exercises, including an 8-day VRRR on 4 September where Rs 1.5 lakh crore was absorbed against bids worth Rs 1.8 lakh crore, and shorter-tenor auctions held earlier in September.

The central bank has been actively conducting VRRR aucti...