RBI to conduct Overnight Variable Rate Reverse Repo auction on September 21

The record

Written from the 4 reports below. Nothing here is unsourced.

The Reserve Bank of India absorbed ₹75,058 crore of surplus cash from banks through an overnight variable rate reverse repo auction on September 21, 2026, after first announcing the operation in advance.
A reverse repo auction is the central bank borrowing from banks overnight, which drains excess liquidity and keeps short-term market rates within the policy corridor.
The size accepted points to substantial spare cash in the banking system that banks are keen to park with the RBI.
Separately, the RBI announced auctions for 91-day, 182-day and 364-day Treasury Bills totaling ₹24,000 crore to cover the government's short-term funding needs.
All coverage comes from the RBI's own communications, so there are no competing interpretations — this is framed as routine liquidity fine-tuning, not a policy-rate change.
Watch whether large absorption auctions recur, since repeated operations would confirm a persistent liquidity surplus.
The T-bill auction results will show where short-term government borrowing costs sit.

Watch whether large reverse repo absorptions recur, signaling persistent surplus liquidity
Track 91/182/364-day T-bill cut-off yields at the ₹24,000 crore auctions
Any switch to liquidity injection (variable rate repo) would signal tightening conditions

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4 reports

English national4

All filed from IndiaSingle origin

Named India · Ajit Prasad · Government of India · Reserve Bank of India

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