GENERAL16 Sept 2026
RBI absorbs ₹2.9 trillion via two VRRR auctions amid surplus liquidity
The RBI absorbed ₹2.90 lakh crore from banks on Wednesday through two variable rate reverse repo (VRRR) auctions. It is soaking up extra cash so overnight lending rates stay close to the repo rate. Banking system liquidity is still about ₹9.85 lakh crore in surplus. That means easy money for now, but the RBI's bond sales could tighten things.
Key Statutory Highlights
- The RBI absorbed ₹2.90 lakh crore through two VRRR auctions held on Wednesday.
- In the first auction, it accepted ₹2,50,025 crore of bids at a weighted average rate of 5.24 per cent.
- Liquidity in the banking system was estimated at a surplus of about ₹9.85 lakh crore as on September 15.
Actionable Advice for Taxpayers / Founders:Keep an eye on deposit and lending rates. With the RBI pulling out surplus cash through VRRR auctions and planned bond sales, short-term rates may firm up, so ask your bank about current rates before fixing your next loan or deposit.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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