RBI Absorbs ₹3.93 Trillion from Banking System through VRRR Auction

The Reserve Bank of India absorbed ₹3.93 trillion from the banking system through a variable rate reverse repo auction, accepting all bids at a 5.24% cut-off rate. The auction was conducted to absorb excess liquidity, estimated at ₹10.73 trillion on September 11, and align overnight money market rates with the repo rate. Additionally, the RBI announced OMO sales of ₹1 trillion in three tranches, with the first tranche auction scheduled for September 17.