The RBI announced the results of the 7-day Variable Rate Reverse Repo auction held on September 1, 2026, accepting proposals totaling ₹1,14,320 crore at a cut-off rate of 5.24%.
Result of the 7-Day Variable Rate Reverse Repo Auction
The Reserve Bank of India (RBI) has disclosed the results of the 7-day Variable Rate Reverse Repo auction conducted on September 1, 2026. The auction saw a notified amount of ₹6,00,000 crore, with total offers received amounting to ₹1,14,320 crore.
The RBI accepted all offers made at this auction, with a cut-off rate and weighted average rate both fixed at 5.24%. This indicates strong interest from banks in locking in liquidity for a week, which reflects current market conditions.
Reverse repo operations like this are vital for managing liquidity in the financial system, allowing the RBI to control money supply effectively. By accepting the full amount offered, the RBI not only absorbs extra liquidity but also reassures market participants during potentially volatile periods.
Legal and financial practitioners should closely monitor these auction results as they provide insight into market liquidity conditions and the RBI's monetary stance, which can influence interest rates and lending capacities.
Citations
- Reserve Bank of India Press Release (2026) No. 63487