The Reserve Bank of India (RBI) on 19 September 2025 conducted separate Variable Rate Repo (VRR) auctions of 3-day and 6-day tenors as part of its liquidity management operations.
In the 3-day VRR, the notified amount was Rs 50,000 crore, but bids received totaled just Rs 390 crore. The RBI allotted the full Rs 390 crore at a cut-off rate of 5.51%, with the weighted average rate coming in at 5.52%.
The 6-day VRR, with a notified amount of Rs 1,00,000 crore, attracted bids worth Rs 59,967 crore. The central bank allotted the entire bid amount at a cut-off rate of 5.51%, with a weighted average rate of 5.51%.
These operations followed the RBI’s absorption of Rs 25,006 crore through a one-day VRR auction on 18 September. Earlier this month, the central bank had absorbed Rs 1,50,015 crore in a three-day VRRR on 12 September, Rs 20,175 crore in a two-day VRRR on 10 September, and Rs 1.5 lakh crore via an eight-day VRRR on 4 September.
The RBI has been actively deploying VRR and VRRR auctions across multiple maturities to manage surplus liquidity arising from government spending and capital inflows, ensuring short-term market rates remain closely aligned with the policy repo rate of 5.50%.