Mumbai, July 19 -- The Reserve Bank of India (RBI) continued its proactive liquidity management initiatives by successfully conducting a 7-day Variable Rate Reverse Repo (VRRR) auction on 18 July 2025. As part of its regular market operations, the auction drew offers totaling Rs 2,07,584 crore, well above the notified amount of Rs 2,00,000 crore. Ultimately, bids worth Rs 2,00,027 crore were accepted. Both the cut-off rate and the weighted average rate stood at 5.49%, reflecting strong competition among participants, with 95.94% of offers at the cut-off partially accepted.

The RBI's recent series of VRRR auctions highlight its ongoing efforts to absorb surplus liquidity and maintain stability in short-term money market rates. On July 11,...