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RBI VRRR auction absorbs ₹3.93 trillion; OMO sales planned

17 September 20261 min read
BANKING & FINANCERBI VRRR auctionabsorbs ₹3.93trillion; OMO salesplanned17 September 2026safalsetu.com

Why in the news

With plenty of surplus cash in the banking system, the central bank drained part of it through a variable rate reverse repo auction and signalled bond sales.

Key facts

  • VRRR auction: ₹3,93,352 crore absorbed against a notified ₹5 trillion.
  • Cut-off rate: 5.24%.
  • Surplus liquidity stood on 11 September at about ₹10.73 trillion.
  • OMO sales of ₹1 trillion announced, in three tranches.
ToolPurpose
Variable Rate Reverse Repo (VRRR)Absorbs temporary liquidity
Open Market Operation (OMO) salesManage more durable liquidity conditions

Exam angle

  • VRRR cut-off rate: 5.24%.
  • Amount notified for VRRR: ₹5 trillion; absorbed: ₹3,93,352 crore.
  • OMO sales announced: ₹1 trillion in three tranches.
  • Difference: VRRR is for temporary liquidity, OMO for durable liquidity.

Test yourself

1. What was the cut-off rate in the RBI VRRR auction that absorbed ₹3,93,352 crore?

The notes give the VRRR cut-off rate as 5.24%.

2. RBI announced OMO sales of what size in three tranches alongside the VRRR auction?

RBI announced ₹1 trillion of OMO sales in three tranches.

3. Which tool is described as absorbing temporary liquidity, as in the RBI September 2026 operations?

The notes say VRRR absorbs temporary liquidity, while OMO sales suit more durable conditions.

This topic is part of Daily Current Affairs 16 & 17 September 2026 (36 topics).

All topics of the dayDay quizSeptember 2026

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