Mumbai, July 24 -- Continuing its calibrated approach to liquidity management, the Reserve Bank of India (RBI) conducted a 2-day Variable Rate Reverse Repo (VRRR) auction on 23 July 2025, successfully absorbing Rs 50,001 crore from the banking system.

The auction drew bids totaling Rs 71,902 crore, well above the notified amount of Rs 50,000 crore, underscoring the banking system's surplus liquidity. The cut-off rate stood at 5.53%, while the weighted average rate came in slightly higher at 5.58%. Bids at the cut-off rate were partially allotted, with a partial allotment percentage of 51.89%.

This short-term operation follows a series of recent VRRR auctions conducted by the RBI as part of its proactive liquidity calibration strategy. J...