National News (11 September 2026): The Reserve Bank of India (RBI) on Friday conducted a Variable Rate Reverse Repo (VRRR) auction as part of its ongoing liquidity management operations, with banks placing offers worth ₹60,449 crore against the central bank’s notified amount of ₹5 lakh crore.
According to the RBI, the auction was undertaken after reviewing prevailing and evolving liquidity conditions in the financial system. The exercise is aimed at absorbing surplus liquidity from the banking system and maintaining orderly conditions in the money market.
The auction attracted total bids amounting to ₹60,449 crore, and the RBI accepted the entire amount offered by participating banks. The cut-off rate and weighted average rate were both fixed at 5.24%.
RBI Absorbs ₹60,449 Crore From Banking System
The latest auction saw banks place ₹60,449 crore with the RBI, significantly below the ₹5 lakh crore amount notified for the operation. The entire amount offered by participants was accepted.
The RBI reported that there was no partial acceptance percentage applicable at the cut-off rate. The outcome provides an indication of the amount of liquidity that banks were willing to deploy with the central bank under the reverse repo mechanism at the prevailing rate.
Liquidity Management Remains RBI Priority
The VRRR operation forms part of the RBI’s liquidity management framework, through which the central bank adjusts the amount of funds available within the banking system.
Under a variable rate reverse repo operation, eligible banks park funds with the RBI for a specified period by bidding at rates determined through the auction process. Such operations enable the central bank to manage short-term liquidity conditions without relying solely on fixed-rate instruments. The RBI had announced the operation after assessing current liquidity conditions and their likely evolution.
Auction Held on September 11
The auction was conducted on September 11, 2026, with the notified amount set at ₹5,00,000 crore.
The RBI’s communication stated that the operational framework for the auction would remain aligned with the guidelines issued in its February 13, 2020 press release. The latest liquidity operation comes amid the central bank’s continued focus on ensuring that money-market conditions remain orderly and that short-term liquidity movements do not create unnecessary volatility.
What the 5.24% Rate Indicates
The 5.24% cut-off rate represents the rate at which the RBI accepted the bids placed during the auction. The weighted average rate also stood at 5.24%, indicating that the accepted bids were concentrated at the same rate.
The auction data will be closely watched by financial-market participants as they assess liquidity conditions and the availability of funds within the banking system. The RBI has continued to use liquidity-management operations to respond to changing conditions in the financial system while maintaining stability in short-term money markets.
Key figures at a glance:
Notified amount: ₹5,00,000 crore
Total offers received: ₹60,449 crore
Amount accepted: ₹60,449 crore
Cut-off rate: 5.24%
Weighted average rate: 5.24%
Auction date: September 11, 2026
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