The Reserve Bank of India (RBI) has launched a 30-day Variable Rate Reverse Repo (VRRR) auction to absorb a record liquidity surplus in the banking system.
The central bank is targeting the withdrawal of ₹7 lakh crore from the system on September 7 to stabilize short-term interest rates.
This move follows the absorption of ₹6.02 lakh crore via previous auctions, reflecting the RBI's strategy to curb excess cash and manage inflationary pressures.