RBI's Rs 50,000 crore VRRR faces muted response from market

The Reserve Bank of India announced a variable rate reverse repo operation of ₹50,000 crore. This decision came after the banking system liquidity reached nearly ₹2 lakh crore on Monday. Banks opted to bid ₹23,905 crore, reflecting an asymmetry in...

By ET Bureau | Updated: Nov 04, 2026, 06.58 AM IST

Mumbai: The RBI announced a liquidity draining variable rate reverse repo (VRRR) operation of ₹50,000 crore after banking system liquidity was at nearly ₹2 lakh crore on Monday. Banks, however, bid ₹23,905 crore as there's an asymmetry in the banking system surplus.

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The weighted average call rate was at 5.45% on Tuesday, versus 5.50% on Monday. The RBI will conduct another VRRR of ₹50,000 crore on Wednesday.

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