Mumbai, July 4 -- The Reserve Bank of India (RBI) on Friday conducted a 7-day Variable Rate Reverse Repo (VRRR) auction under its Liquidity Adjustment Facility (LAF), receiving robust participation from banks amid a sharp rise in surplus liquidity.

The central bank had notified an auction amount of Rs 1,00,000 crore. Bids worth Rs 1,70,880 crore were received, significantly oversubscribed. The RBI accepted Rs 1,00,010 crore at a cut-off rate of 5.47%. The weighted average rate stood at 5.44%. Bids at the cut-off rate saw a partial acceptance of 60.45%.

In the previous 7-day VRRR auction held on June 27, banks parked Rs 84,975 crore against the notified amount of Rs 1 lakh crore. The RBI accepted the entire bid amount at a weighted avera...