RBI absorbs Rs 3.93 lakh cr from banking system via VRRR auction

The Reserve Bank of India absorbed significant funds through a variable rate reverse repo auction. This action aimed to manage the banking system’s substantial surplus liquidity effectively. The central bank also announced open market operation sales of government securities. These measures address the excess funds stemming from deposit inflows and government spending. The RBI seeks to align overnight money market rates with its policy repo rate.

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