Reserve Bank of India absorbs ₹2.9L/cr via VRRR auction
The Reserve Bank of India just took back about ₹2.9 lakh crore from banks overnight using something called a Variable Rate Reverse Repo (VRRR) auction on September 16, 2026.
Basically, there was way too much extra cash (over ₹9 lakh crore) floating around in the system, so the RBI stepped in to help keep things balanced and steady for everyone.
They split the operation into two rounds: first, they absorbed ₹2.5 lakh crore at a 5.4% rate after getting tons of bids, and then took in another ₹40,302 crore at the same rate.
VRRR helps manage surplus liquidity
VRRR is like a safe place for banks to park their spare cash with the RBI and earn some interest while they're at it.
Moves like this help prevent too much money sloshing around, which can mess with prices and stability.
Plus, with more foreign deposits expected soon, keeping an eye on liquidity is extra important right now.