RBI mops up ₹2 trillion through VRRR auction amid surplus liquidity

The Reserve Bank of India’s variable rate reverse repo (VRRR) auction received robust demand from banks on Friday, with bids totalling Rs 2.28 trillion against a notified amount of Rs 2 trillion. RBI had stated the auction was due to prevailing transient liquidity surplus conditions.

Liquidity surplus, as measured by banks parking funds in the RBI’s liquidity adjustment facility, was Rs 4.09 trillion on Thursday, compared to Rs 5.2 trillion on Wednesday.

The weighted average call rate (WACR) was 5.11 per cent today, compared to 5.09 per cent at the previous close.