RBI to conduct ₹2 trillion VRRR to absorb surplus liquidity in system

The Reserve Bank of India will conduct a seven-day variable rate reverse repo (VRRR) on Friday for a notified amount of Rs 2 trillion, “in view of the surplus transient liquidity conditions prevailing”, the central bank said.

The liquidity surplus in the banking system — as measured by banks parking funds in the RBI’s liquidity adjustment facility window — was Rs 5.2 trillion on Wednesday. The surplus has been over Rs 5 trillion for the last few days.

The RBI conducted a similar auction on April 10, 2026, for a similar amount.