The Reserve Bank of India absorbed more than ₹6 trillion through liquidity withdrawal operations after banking system surplus hit a record ₹11.6 trillion. Banks parked ₹2.59 trillion in a 30-day auction, while ₹3.53 trillion was offered in an overnight auction. The RBI may deploy additional reverse repos, market stabilisation bonds and sell-buy swaps to drain excess liquidity.

RBI absorbs ₹6.02 lakh crore through VRRRs as banking liquidity surplus reaches record high, impacting short-term money market rates.

The surplus liquidity in the system rose to a record high of Rs 10.3 lakh crore as of September 3, forcing the central bank to step up liquidity absorption operations. The massive…

The Reserve Bank of India is conducting auctions to absorb excess funds. This liquidity stems from special dollar mobilization programs and forex inflows. The central bank aims…