Liquidity Surge: Market Absorbs ₹58,671 Crore in Overnight Variable Rate Reverse Repo Auction
The Reserve Bank of India (RBI) successfully conducted the overnight Variable Rate Reverse Repo (VRRR) auction on August 10, 2026. The auction saw significant absorption as participants offered a substantial amount against the notified requirement, indicating strong market interest at the current rate structure.VRRR Auction Performance Metrics
The RBI had notified an amount of ₹ 1,00,000 crore in the overnight Variable Rate Reverse Repo (VRRR) auction. In response to this notification, financial institutions submitted a total offers amounting to ₹ 58,671 crore. The market effectively absorbed the entire accepted portion against the offered capital at the specified rate.Key Rates and Market Absorption
The auction results confirmed that the amount accepted stood at ₹ 58,671 crore. This acceptance level reflects keen demand within the interbank market for short-term liquidity instruments managed through this mechanism. The Cut off Rate for the 1-day tenor was announced at 5.24%.The Weighted Average Rate remained consistent with the Cut off Rate, standing at 5.24%. This consistency suggests a clear and stable rate establishment for overnight variable rate reverse repo operations as of August 10, 2026.
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