The RBI absorbed nearly ₹2 trillion (₹2 lakh crore) from the banking system through a seven-day variable rate reverse repo (VRRR) auction on Friday. The cut-off rate was 5.24%, while the weighted average rate stood at 5.23%. A VRRR auction is used by the RBI to absorb excess liquidity from banks for a specified tenure, helping manage short-term interest rates.