RBI concludes ₹28,220 crore VRR auction at 5.26% cut-off rate

The Reserve Bank of India (RBI) conducted an Overnight Variable Rate Repo (VRR) auction on June 15, 2026, with a notified amount of ₹75,000 crore. A total of ₹28,220 crore was bid and fully allotted at a cut-off rate of 5.26%, with a weighted average rate of 5.27%.

The VRR mechanism 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 based on their liquidity needs, and the RBI determines the cut-off rate based on the bids received.

The notified amount for this auction was ₹75,000 crore, but the bids received totaled ₹28,220 crore, indicating lower demand for funds compared to the maximum available. All bids were fully allotted, meaning no partial allotments were made.

The cut-off rate of 5.26% reflects the interest rate at which the last bid was accepted, while the weighted average rate of 5.27% provides an average of all accepted bids. These rates are indicative of the current liquidity conditions and interest rate trends in the market.

Such auctions are part of the RBI's broader monetary policy framework aimed at ensuring liquidity stability and supporting economic activity. The results of these auctions are closely monitored by market participants for insights into liquidity trends.

Key Points

• RBI held an Overnight VRR auction on June 15, 2026.
• Notified amount was ₹75,000 crore; bids totaled ₹28,220 crore.
• ₹28,220 crore was fully allotted at a 5.26% cut-off rate.
• Weighted average rate for the auction was 5.27%.
• No partial allotments were made in this auction.

FAQ

What was the notified amount for the VRR auction?

The notified amount for the auction was ₹75,000 crore.

What was the cut-off rate for the auction?

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

Source: Reserve Bank of India press release, Mon, 15 Jun 2026 10:25:00. https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=62930