On May 21, 2026, the RBI conducted an Overnight Variable Rate Repo auction with an allotment of ₹25,360 crore. The cut-off rate was set at 5.26%.
Results of the Overnight Variable Rate Repo Auction
The Reserve Bank of India (RBI) successfully conducted an Overnight Variable Rate Repo (VRR) auction on May 21, 2026, which attracted substantial liquidity from the banking sector. The notified amount was ₹1,25,000 crore, with total bids received amounting to ₹25,360 crore.
The entire amount of ₹25,360 crore was allotted at a cut-off rate of 5.26%, reflecting the demand from banks under current liquidity conditions. The weighted average rate for this auction also stood at 5.26%, indicating a stable borrowing cost for participating banks.
This auction under the Liquidity Adjustment Facility (LAF) plays a pivotal role in ensuring adequate liquidity for banks, providing them access to funds to meet short-term obligations. Practitioners must closely monitor such auctions as they influence market liquidity and interest rates.
Citations
- RBI Press Release 2026
