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Reserve Bank of India absorbs 2.23 lakh crore rupees to manage liquidity
The Reserve Bank of India (RBI) is actively managing significant excess liquidity within the domestic banking system. On Friday, the central bank absorbed 2.23 lakh crore rupees through a Variable Rate Reverse Repo (VRRR) auction at a weighted average rate of 5.24 percent. This action aims to control money supply and align short-term market rates with the policy repo rate.
This liquidity management follows a period of high inflows, including a record 127 billion dollars in Foreign Currency Non-Resident (Bank) deposits. This influx, driven by a targeted campaign to attract the Indian diaspora, has provided a critical buffer for foreign exchange reserves but has also contributed to the surplus cash in the banking sector.
Despite these inflows, India's total foreign exchange reserves saw a weekly decline of 4.92 billion dollars, falling to 780.78 billion dollars as of the week ending September 11. The decrease was primarily due to reductions in foreign currency assets and gold reserves. To further manage liquidity, the RBI has scheduled additional Open Market Operation (OMO) sales totaling 50,000 crore rupees for late September.
Entities
India · International Monetary Fund · Narendra Modi · Nirmala Sitharaman · Reserve Bank of India
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] The RBI scheduled two additional Open Market Operation (OMO) sales of 25,000 crore rupees each for September 21 and September 28. www.bhaskarhindi.com
- [○ 1 SOURCE] The VRRR auction received bids totaling 2.23 lakh crore rupees against a target of 2.25 lakh crore rupees. www.bhaskarhindi.com
- [○ 1 SOURCE] The banking system held a surplus liquidity of approximately 6.94 lakh crore rupees as of September 17. www.bhaskarhindi.com
- [○ 1 SOURCE] The decline in reserves was driven by a 2.37 billion dollar drop in foreign currency assets and a 2.59 billion dollar drop in gold reserves. www.chinimandi.com
- [○ 1 SOURCE] India's foreign exchange reserves decreased by 4.92 billion dollars to 780.78 billion dollars for the week ending September 11. www.chinimandi.com
- [● 2 SOURCES] Foreign Currency Non-Resident (Bank) deposits reached a record 127 billion dollars by early September 2026. cryptobriefing.com · www.newindianexpress.com
- [○ 1 SOURCE] The absorbed amount was processed at a weighted average rate of 5.24 percent. www.bhaskarhindi.com
- [○ 1 SOURCE] The Reserve Bank of India absorbed 2.23 lakh crore rupees through a Variable Rate Reverse Repo (VRRR) auction. www.bhaskarhindi.com