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RBI’s 2-Day VRR Auction Sees ₹29,114 Crore Bids, Cut-Off Rate at 5.26%

RBI’s January 14, 2026 two-day Variable Rate Repo auction received ₹29,114 crore bids against ₹50,000 crore notified, with cut-off rate at 5.26%.
RBI’s 2-Day VRR Auction Sees ₹29,114 Crore Bids, Cut-Off Rate at 5.26%

Mumbai, January 14, 2026: The Reserve Bank of India (RBI) on Wednesday conducted a 2-day Variable Rate Repo (VRR) auction to manage short-term liquidity in the banking system, attracting total bids of ₹29,114 crore against the notified amount of ₹50,000 crore, reflecting moderate liquidity demand from banks.

According to data released by the central bank, the entire bid amount of ₹29,114 crore was fully allotted, while the cut-off rate and weighted average rate both stood at 5.26%, indicating stable short-term funding conditions in the financial system.

 

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Key Highlights of the Auction

  • Tenor: 2 days

  • Notified amount: ₹50,000 crore

  • Total bids received: ₹29,114 crore

  • Amount allotted: ₹29,114 crore

  • Cut-off rate: 5.26%

  • Weighted average rate: 5.26%

  • Partial allotment at cut-off: Not applicable

 

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Liquidity Conditions Remain Comfortable

Market participants noted that the lower-than-notified subscription suggests banks currently have adequate liquidity, reducing the need to borrow aggressively from the RBI. The uniform cut-off and weighted average rates also indicate a balanced demand-supply situation in the money markets.

The VRR is a key tool used by the RBI to fine-tune liquidity in the banking system and guide short-term interest rates in line with its monetary policy stance.

Analysts expect liquidity conditions to remain comfortable in the near term, with RBI continuing to deploy VRR operations as required to ensure orderly market functioning.

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