RBI mops up Rs 82,788 crore via first VRRR auction

The Reserve Bank of India (RBI) conducted the first of two Overnight Variable Rate Reverse Repo (VRRR) auctions under the Liquidity Adjustment Facility (LAF) on August 18, 2026. The RBI mopped up Rs 82,788 crore from the auction, against a notified amount of Rs 1.5 lakh crore. The cut-off rate was 5.24 percent, and the weighted average rate was also 5.24 percent.

The RBI had scheduled two VRRR auctions for the day. The first auction had a window from 9:30 AM to 10:00 AM, with the reversal due on August 19. The second auction, announced later with a notified amount of Rs 75,000 crore, was scheduled from 12:00 noon to 12:30 PM. The RBI said the auctions were based on a review of current and evolving liquidity conditions.

The results of the second auction were not yet released at the time of the first report. These auctions are part of the RBI's routine liquidity management operations to absorb excess liquidity from the banking system.