Liquidity control: RBI’s one‑day reverse repo pulls in over ₹3.53 lakh crore

Mumbai, September 7 – To rein in the surge of liquidity that has been building in the Indian banking sector, the Reserve Bank of India employed its overnight variable‑rate reverse repo mechanism for a single day on Monday. The auction fetched ₹3,53,390 crore in bids, representing more than 70 % of the ₹5 lakh crore limit set by the central bank.

All bids were accepted at a weighted average rate just above the 5.24 % cut‑off. Through this operation, banks deposit excess funds with the RBI and receive interest, effectively draining surplus cash from the market.