The Reserve Bank of India (RBI) on Monday conducted a seven-day Variable Rate Repo (VRR) auction for ₹1 lakh crore, as surplus liquidity in the banking system fell substantially. Since August 6, the central bank had been absorbing liquidity through VRRR auctions to drain surplus generated by banks' FCNR(B) deposit mobilisation under a limited swap window (June 8 to August 31). Monday's seven-day VRRR auction drew bids of ₹1,50,735 crore against the notified ₹1 lakh crore and accepted ₹1,00,014 crore at a weighted average rate of 5.52%. As surplus shrinks towards a small deficit, the recent 25 basis-point repo rate hike is expected to transmit more effectively to deposit and lending rates. Average daily net absorption under the liquidity adjustment facility rose from ₹1.2 lakh crore in July to ₹7.8 lakh crore in September, and surplus stood at ₹1,85,873 crore as of October 18, 2026.
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DXY
• NeutralRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/16/2026 | 101.78 |
| Change that session | -0.20% |
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