On October 22, 2026, the RBI conducted an overnight VRR auction, allotting ₹50,006 crore at a cut-off rate of 5.54%. Total bids received amounted to ₹1.62 lakh crore, with partial allotment at cut-off rate at 3.2%.
Overnight Liquidity Injection Sees Strong Response
The Reserve Bank of India conducted an overnight Variable Rate Repo (VRR) auction on October 22, 2026, allotting ₹50,006 crore against a notified amount of ₹50,000 crore. Total bids received were substantial, reaching ₹1,62,354 crore, reflecting acute liquidity demand in the system.
The cut-off rate was set at 5.54%, with a weighted average rate of 5.55%. Notably, only 3.2% of the bids received at the cut-off rate were allotted, indicating a high degree of competitive pressure and limited allocation per participant. This signals tight overnight funding conditions despite the RBI’s liquidity infusion.
Such selective allotment patterns are indicative of the central bank’s strategy to manage liquidity with precision. For practitioners in banking and finance, these rates serve as benchmarks for short-term interbank lending and repo market valuations.
