RBI absorbs ₹6.02 lakh crore via 2 VRRRs as banking system liquidity surplus hits record high
BusinessLine 1 hr ago·4 Sept 2026, 11:20 am
The Reserve Bank of India (RBI) has absorbed a record ₹6.02 lakh crore from the banking system through two Variable Rate Repositories (VRRRs). This massive injection of liquidity was executed to manage the surplus cash banks currently hold. The central bank accepted bids worth ₹5.42 lakh crore against a notified amount of ₹7 lakh crore, with the rate set at 5.24%.
This move is significant for investors as it highlights the abundance of liquidity in the market. For the broader market, this indicates that banks have ample funds to lend, which is generally positive for credit growth. However, it also suggests that the central bank is currently in a 'liquidity absorption' phase rather than a 'liquidity injection' phase, which can influence short-term interest rates.
Excerpt from BusinessLine
The Reserve Bank of India (RBI) on Friday absorbed over ₹6.02 lakh crore from the banking system through two variable rate reverse repo (VRRR) auctions as surplus liquidity remained at a record high. The central bank received and accepted bids worth ₹5,41,975 crore in a three-day VRRR auction against the notified…Read the original at BusinessLine
Key takeaways
- Category: Economy.
- Flagged as a high-impact, market-moving story.
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