📄 Source: Reserve Bank of India · Press Release prid 63033
Quick answerRBI allotted ₹75,021 crore in a 2-day VRR auction on June 29, 2026, at a cut-off rate of 5.26%. Bids worth ₹76,275 crore were received, indicating strong demand. Partial allotment at cut-off was 98.09%.
What changed
RBI conducted a 2-day Variable Rate Repo auction with a notified amount of ₹75,000 crore. Total bids received were ₹76,275 crore, and the central bank allotted ₹75,021 crore. The cut-off and weighted average rate both stood at 5.26%.
What it means for you
The auction signals that banks are seeking short-term liquidity, and the RBI is injecting funds at the prevailing repo-linked rate. The slight oversubscription suggests comfortable but not excessive liquidity demand. The uniform cut-off and weighted average rate indicate a tight bid range.
What you must do
Monitor short-term liquidity conditions and adjust your bank's borrowing strategy accordingly.
Review your treasury's participation in upcoming VRR auctions to optimize funding costs.
Align lending and deposit rates with the current repo-linked rate environment.
Who it affects
All scheduled commercial banks, Primary dealers, Treasury departments of banks, Liquidity managers
What is the significance of the cut-off rate being equal to the weighted average rate?
It indicates that all successful bids were accepted at the same rate, showing a uniform pricing in the auction and no rate dispersion among bidders.
Why was the partial allotment percentage at cut-off 98.09%?
Because bids at the cut-off rate exceeded the remaining amount to be allotted, so each such bid received only 98.09% of the amount sought.
Test yourself
Quick self-check built only from the facts already on this page — tap a question to reveal the answer.
Q1. In one line, what does this circular do?
RBI allotted ₹75,021 crore in a 2-day VRR auction on June 29, 2026, at a cut-off rate of 5.26%. Bids worth ₹76,275 crore were received, indicating strong demand. Partial allotment at cut-off was 98.09%.
Q2. Who does this circular apply to?
All scheduled commercial banks, Primary dealers, Treasury departments of banks, Liquidity managers
Q3. What is the first thing you should do about it?
Monitor short-term liquidity conditions and adjust your bank's borrowing strategy accordingly.
Monitor short-term liquidity conditions and adjust your bank's borrowing strategy accordingly.
Review your treasury's participation in upcoming VRR auctions to optimize funding costs.
Align lending and deposit rates with the current repo-linked rate environment.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (All scheduled commercial banks, Primary dealers, Treasury departments of banks, Liquidity managers), your first concrete step on “VRR Auction June 29, 2026: ₹75,021 Cr Allotted at 5.26%” is: “Monitor short-term liquidity conditions and adjust your bank's borrowing strategy accordingly.” (RBI issued this 29 Jun 2026).
Circular: https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=63033 -- VRR Auction June 29, 2026: ₹75,021 Cr Allotted at 5.26%
Issued: 29 Jun 2026
Action required: Monitor short-term liquidity conditions and adjust your bank's borrowing strategy accordingly.
Action required: Review your treasury's participation in upcoming VRR auctions to optimize funding costs.
Action required: Align lending and deposit rates with the current repo-linked rate environment.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
AI-drafted · 1-model AI consensus fact-check · under the editorial review of our expert review panel · decoded & published by BankPulse · 29 Jun 2026, 10:46 IST
Official RBI source: https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=63033 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert review panel. Independent platform, not affiliated with the Reserve Bank of India; never reproduces RBI text verbatim.
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