The Reserve Bank on Wednesday absorbed Rs 75,026 crore from the banking system through an overnight variable rate reverse repo (VRRR) auction amid surplus liquidity.
The central bank received bids worth Rs 87,993 crore for a notified amount of Rs 75,000 crore, but it accepted only Rs 75,026 crore, according to the notification.
The bids were accepted at a cut-off and weighted average rate of 5.24 per cent.
The RBI has been conducting various VRRR auctions since last month to absorb excess liquidity from the banking system and align overnight money market rates to the repo rate.
Currently, liquidity in the banking system is estimated to be in surplus of around Rs 4.45 lakh crore as on September 22, as per RBI data.
The central bank also conducted two open market operations (OMO) sales of government securities worth Rs 50,000 crore on September 17 and Rs 25,000 crore on September 21.
Under an OMO sale, banks and other investors buy government securities from the RBI, thereby draini
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