Banks See VRRR Auction Size Doubling

RBI gets bids worth ₹97,315 cr against notified ₹1 trn; bid amount accepted at a cutoff rate of 5.49%

- ANJALI KUMARI

Banks are expecting the Reserve Bank of India (RBI) to double the size of its variable rate reverse repo (VRRR) auction as liquidity in the banking system continues to stay at a surplus of around ₹3 trillion.

On Wednesday, the RBI received bids worth ₹97,315 crore in its two-day VRRR auction, against the notified amount of ₹1 trillion. The central bank accepted the entire bid amount at a cutoff rate of 5.49 per cent, higher than the 5.47 per cent cutoff in the previous seven-day VRRR auction held on July 4, which had attracted bids worth ₹1.7 trillion.