What changed
The Reserve Bank of India conducted a 7-day Variable Rate Repo auction on June 16, 2026. The notified amount was ₹1,50,000 crore, and the total amount of bids received was ₹89,440 crore. The cut-off rate and weighted average rate were both 5.26%.
What it means for you
The auction result indicates the current liquidity situation in the market and the interest rates at which banks are willing to borrow from the RBI. This can have implications for the overall monetary policy and the banking sector. The cut-off rate of 5.26% suggests that the RBI is maintaining a stable interest rate environment.
What you must do
- Monitor the RBI's monetary policy decisions
- Adjust lending and borrowing strategies accordingly
- Keep track of liquidity conditions in the market
Who it affects
Banks, Financial institutions, Money market participants
What is a Variable Rate Repo auction?
A Variable Rate Repo auction is a type of auction where the RBI lends money to banks at a variable interest rate.
What is the significance of the cut-off rate?
The cut-off rate is the minimum interest rate at which the RBI is willing to lend money to banks.