The seven-day variable rate reverse repo (VRRR) auction on Friday received a good response with a subscription of Rs 2.08 lakh crore. This was in contrast to the tepid response to the other recent VRRR auctions. The Reserve Bank of India (RBI) accepted a sum of Rs 2 lakh crore from banks at a cut-off rate of 5.49%. Ample liquidity despite GST-related outflows While some outflows are expected in the next week on account of upcoming GST payments, the liquidity levels in the system remain reasonably high. As the treasury head of a leading bank pointed out, “There is ample liquidity in the system. It is more than Rs 3 lakh crore despite the many VRRR auctions.”