Mumbai, Aug. 18 -- The Reserve Bank of India (RBI) conducted a 3-day Variable Rate Reverse Repo (VRRR) auction on 18 August 2025, aiming to absorb excess liquidity from the banking system. The notified amount for the auction was Rs 25,000 crore, while the total amount of offers received stood at Rs 23,360 crore, the same amount was accepted by the RBI. The cut-off rate for the auction was set at 5.49%, with a weighted average rate of 5.48%.

This VRRR auction, part of RBI's ongoing liquidity management operations, is designed to keep short-term market rates aligned with the policy repo rate by absorbing surplus funds from banks. The RBI has conducted similar VRRR auctions in preceding days to manage the impact of government spending and o...