Result of the Overnight Variable Rate Reverse Repo (VRRR) auction held on September 21, 2026
RBI 1 hr ago·21 Sept 2026, 4:58 am
Economy RBI
The Reserve Bank of India (RBI) conducted its overnight Variable Rate Reverse Repo (VRRR) auction on September 21, 2026. This facility allows banks to park their excess funds with the central bank overnight. The auction saw a notified amount of ₹1,00,000 crore, with ₹75,058 crore in offers received and fully accepted at a cut-off rate of 5.24%.
This outcome is a key indicator of liquidity conditions in the banking system. A high volume of accepted offers suggests that banks currently have surplus cash and are seeking safe, short-term avenues to park it. Consequently, the VRRR rate acts as a floor for short-term borrowing costs in the money market.
For investors, this signals a relatively comfortable liquidity environment. It implies that the cost of funds for banks is stable, which can support credit growth. However, if the volume of accepted offers drops significantly in future auctions, it may signal tighter liquidity and could influence short-term interest rates in the broader market.
Key takeaways
- Category: Economy.
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