Document title: Result of the Overnight Variable Rate Repo (VRR) auction held on June 22, 2026
Issuing authority: Reserve Bank of India (RBI)
Reference number: Press Release: 2026-2027/507
Date: June 22, 2026
Policy Rates and Liquidity
The RBI conducted an overnight Variable Rate Repo (VRR) auction on June 22, 2026. The notified amount for the auction was ₹125,000 crore. Bids received amounted to ₹36,300 crore, and the entire bid volume was allotted. Both the cut‑off rate and the weighted average rate for the auction were 5.26 per cent, establishing the repo rate for that session. No partial allotment percentage was applicable as the full bid amount was allotted at the cut‑off rate.
Regulatory and Policy Measures
The auction result reflects the RBI's implementation of its overnight VRR mechanism, aimed at managing short‑term liquidity in the banking system. By announcing the cut‑off and weighted average rates, the RBI provides market participants with the prevailing repo rate, which influences inter‑bank funding costs and overall monetary conditions.
The auction saw full subscription of the bid amount at a 5.26% rate, indicating robust demand for overnight liquidity at the announced rate. This outcome underscores the effectiveness of the VRR framework in calibrating short‑term market rates.