India Monetary Policy RBI MPC Decisions — September 03, 2026
Intra-day liquidity operations on September 3, 2026, reveal the RBI is actively managing a structurally surplus banking system, with a second Overnight VRRR auction and a massive ₹7 lakh crore 3-day VRRR auction scheduled for September 4. The system's net absorption of ₹9,70,263 crore on September 2 confirms an excess liquidity overhang, with overnight rates (WAR 4.71%) trading well below the repo rate. The back-to-back VRRR operations suggest the RBI is absorbing surplus rather than signalling a neutral-to-tight stance, consistent with its current accommodative bias. The scheduled reversal on September 7 (Monday) will release ₹7 lakh crore into the system, likely keeping short-term rates anchored below 5%.