RBI 10-day VRRR auction draws weak bids of Rs 18,170 crore
In short
The RBI got bids worth Rs 18,170 crore in its 10-day VRRR auction on Friday, against a notified amount of Rs 1.50 lakh crore. The report says banks preferred shorter maturities.
This shows weak demand for the longer-tenure reverse repo auction, but the reporting does not say what the RBI will do next. It also does not give the final allotment.
What the reporting says
The RBI received bids worth Rs 18,170 crore against a notified amount of Rs 1.50 lakh crore in its 10-day VRRR auction on Friday. The summary suggests banks preferred shorter maturities, but it does not provide the full auction outcome or any RBI response. The low bid cover indicates tepid demand, though the reasons are not fully detailed in the available reporting.
Why it matters
The Reserve Bank of India’s 10-day variable rate reverse repo auction drew bids of Rs 18,170 crore against Rs 1.50 lakh crore notified. The market takeaway is weak appetite for this longer-tenure liquidity absorption tool, with banks said to prefer shorter maturities. The source does not state the RBI’s next move, the cutoff rate, or whether the shortfall will affect liquidity conditions.