RBI bid to drain surplus liquidity and improve rate transmission sees muted response. Comprehensive market analysis and insights regarding this update. Banks parked just Rs 79,655 crore in the central bank’s 29-day variable rate reverse repo (VRRR) auction, less than half the Rs 2 lakh crore absorption planned in the offer. Draining liquidity is considered crucial for quicker and effective transmission of increases in policy rates. Industry experts note that this development will have significant implications moving forward.