RBI absorbs 71,971cr via reverse repo to address liquidity surplus
The Reserve Bank of India, or RBI, just soaked up ₹71,971 crore from banks overnight using a variable rate reverse repo auction, basically a tool to pull back extra money floating around.
This is part of their effort to handle a huge liquidity surplus (about ₹4.92 lakh crore) and keep things running smoothly in the financial system.
RBI sells 75,000cr government bonds
To make sure interest rates don't swing wildly, the RBI uses these auctions along with open market operations, like selling government bonds (₹75,000 crore already sold this month).
This excess cash comes from foreign currency inflows and month-end government expenditure, including salaries and pensions.
All these moves are about keeping rupee liquidity under control and making sure borrowing costs stay predictable for everyone.