RBI’s 2-Day Variable Rate Reverse Repo Auction: July 9, 2025 Results
The Reserve Bank of India (RBI) successfully completed its 2-day Variable Rate Reverse Repo (VRRR) auction on July 9, 2025. This operation is a key tool for managing liquidity in the Indian banking system.
Auction Results at a Glance
Here’s a summary of the auction outcomes:
| Parameter | Value |
|---|---|
| Tenor | 2-day |
| Notified Amount (₹ Crore) | 1,00,000 |
| Total Bids Received (₹ Crore) | 97,315 |
| Amount Accepted (₹ Crore) | 97,315 |
| Cutoff Rate (%) | 5.49 |
| Weighted Average Rate (%) | 5.46 |
| Partial Acceptance Percentage | NA |
Understanding the VRRR
The Variable Rate Reverse Repo (VRRR) is a monetary policy instrument used by the RBI to absorb excess liquidity from the banking system. Banks park their surplus funds with the RBI for a short period at a predetermined interest rate (the reverse repo rate).
