RBI allots ₹89,440 crore in 7-day Variable Rate Repo auction

The Reserve Bank of India (RBI) conducted a 7-day Variable Rate Repo (VRR) auction on June 16, 2026, with a notified amount of ₹1,50,000 crore. A total of ₹89,440 crore was bid and fully allotted at a cut-off rate of 5.26%, which was also the weighted average rate.

The VRR auction is a liquidity adjustment tool used by the RBI to manage short-term liquidity in the banking system. In this auction, banks and financial institutions bid for funds at variable interest rates, with the RBI deciding the cut-off rate based on the bids received.

The notified amount for this auction was ₹1,50,000 crore, but the total bids received amounted to ₹89,440 crore, indicating a lower demand for liquidity than the maximum available. The entire bid amount was allotted, reflecting the RBI's commitment to ensuring adequate liquidity in the system.

The cut-off rate and the weighted average rate for this auction were both set at 5.26%, showing uniformity in the rates at which funds were allocated. No partial allotment was reported, as the bids matched the amount allotted.

This auction is part of the RBI's ongoing efforts to manage liquidity and stabilize the financial system, ensuring that banks have access to funds to meet their short-term requirements.

Key Points

• RBI conducted a 7-day VRR auction on June 16, 2026.
• Notified amount for the auction was ₹1,50,000 crore.
• Total bids received were ₹89,440 crore, fully allotted.
• Cut-off and weighted average rate were both 5.26%.
• No partial allotment was reported in the auction.

FAQ

What was the cut-off rate in the 7-day VRR auction?

The cut-off rate in the auction was 5.26%.

How much was allotted in the auction?

A total of ₹89,440 crore was allotted in the auction.

Source: Reserve Bank of India press release, Tue, 16 Jun 2026 10:30:00. https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=62943