The Reserve Bank of India (RBI) conducted a one-day Variable Rate Repo (VRR) auction on January 28, 2025, to address liquidity requirements in the banking system.
The notified amount for the auction was set at ₹2,00,000 crore, while the total bids received amounted to ₹1,39,281 crore. The entire amount of ₹1,39,281 crore was allotted, reflecting the exact quantum of demand from market participants.
The cut-off rate for the auction stood at 6.51%, while the weighted average rate was also recorded at 6.51%. Since the bids matched the notified amount, no partial allotment was required.
The VRR auctions are part of the RBI’s ongoing measures to manage short-term liquidity in the banking sector. These operations aim to ensure stability in financial markets and provide adequate funds for banks to meet their short-term obligations.
Market participants will continue to monitor upcoming liquidity operations by the central bank, as they remain a crucial tool for managing evolving liquidity conditions in the financial system.
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