RBI Accepts ₹58,671 Crore in VRRR Auction

The Reserve Bank of India conducted an Overnight Variable Rate Reverse Repo (VRRR) auction on August 10, 2026, with a notified amount of ₹1,00,000 crore. The auction saw the Reserve Bank accept bids worth ₹58,671 crore at a cut-off rate of 5.24%.

The total amount of offers received for the auction was ₹58,671 crore, which was fully accepted by the Reserve Bank. The weighted average rate for the auction was also 5.24%, matching the cut-off rate.

The tenor for the Overnight Variable Rate Reverse Repo (VRRR) auction was 1-day, as is typical for such auctions. The partial acceptance percentage of offers received at the cut-off rate was not applicable, as the Reserve Bank accepted all offers received at the cut-off rate.

## Why it matters The Overnight Variable Rate Reverse Repo auction is a key tool used by the Reserve Bank of India to manage liquidity in the financial system. By accepting bids at a cut-off rate of 5.24%, the Reserve Bank is effectively setting the interest rate at which banks can borrow money from it. This can have a ripple effect on the entire economy, influencing borrowing costs and monetary policy.

The fact that the Reserve Bank accepted the full amount of offers received at the cut-off rate suggests that it is seeking to maintain a stable and predictable interest rate environment. This can help to boost confidence in the financial system and support economic growth.

The Reserve Bank's actions in the VRRR auction will be closely watched by market participants and economists, as they can provide insight into the central bank's monetary policy stance and its efforts to manage inflation and support economic growth.