The Reserve Bank of India conducted a Variable Rate Repo (VRR) auction, allotting ₹29,695 crore at a cut-off rate of 5.26%. The auction reflects the current liquidity condition in the money market.
Result of the 2-day Variable Rate Repo (VRR) Auction
The Reserve Bank of India (RBI) has concluded a Variable Rate Repo (VRR) auction on July 1, 2026, with a total allotment of ₹29,695 crore from bids received against a notified amount of ₹1,25,000 crore. The cut-off and weighted average rates were both set at 5.26%.
The VRR auction was aimed at addressing the evolving liquidity conditions. The total amount allotted thoroughly utilized the bids received, indicating robust interest in securing liquidity under the current monetary policy framework.
As this VRR auction offers banks a mechanism to manage their liquidity positions, it is crucial for financial practitioners to monitor these outcomes, as they can influence the broader money market and lending rates.
Citations
- RBI Press Release (2026)