On May 18, 2026, the RBI conducted a successful 7-day Variable Rate Repo (VRR) auction, allotting ₹16,005 crore at a cut-off rate of 5.26%. Total bids received were ₹16,005 crore, indicating full participation at the set cut-off rate.
7-Day Variable Rate Repo Auction Results Announced
On May 18, 2026, the Reserve Bank of India (RBI) conducted a 7-day Variable Rate Repo (VRR) auction. The notified amount for this auction was ₹100,000 crore, with bids totaling ₹16,005 crore received.
The entire amount of ₹16,005 crore was allotted at a cut-off rate of 5.26%. This indicates a strong interest from market participants and a favorable liquidity position. The weighted average rate also stood at 5.26%, showing consistency in the auction results.
These VRR auctions are vital for managing liquidity in the banking system and ensuring financial stability. They allow banks to borrow funds for a short duration using government securities as collateral.
For practitioners, the successful auction reinforces the importance of liquidity management strategies in their financial operations, especially as they pertain to regulatory requirements set forth by the RBI.
Citations
- 7-Day Variable Rate Repo Auction (2026) Reserve Bank of India
