The central bank on Friday mobilised a total of Rs 6.02 lakh crore through two separate VRRR auctions against the cumulative notified amount of Rs 8.5 lakh crore.
The surplus liquidity in the system rose to a record high of Rs 10.3 lakh crore as of September 3, forcing the central bank to step up liquidity absorption operations. The massive foreign currency inflows and the following dollar-rupee swaps are contributing to the massive liquidity overhang.
The overnight call rates are on a downward trend on account of the abundant liquidity in the system. The weighted average call rate stood at 4.95% Thursday, against 5.02% a day prior.
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The central bank meanwhile sold two government papers — one new stock and the 7.71% 2066 stock for a total Rs 32000 crore Friday. The new five year stock saw the cut-off yield settling at 6.53% while the 7.71% 2066 paper saw the cut-off yield at 7.6618%, RBI said.