RBI Debt Market: Impressive Results from the Second Overnight Variable Rate Reverse Repo Auction
The second overnight variable rate reverse repo auction conducted by the RBI on September 16 showed strong demand, with offer volumes exceeding the notified amount. The accepted rate remained stable, reflecting confidence in India's economy within a context of increasing global uncertainties.
On the night of September 16, 2026, the Reserve Bank of India (RBI) conducted its second overnight variable rate reverse repo (VRRR) auction. A total notional amount of R$ 1 billion in bonds was announced, with a received offer volume of R$ 40.3 billion, indicating strong interest in the RBI’s secondary debt market. The cut-off rate and weighted average rate both settled at 5.24%, suggesting high competition among participants. It's noteworthy that there was no partial rejection of offers, indicating high satisfaction with the RBI’s established conditions. These results reflect ongoing confidence in monetary policies and India’s economy amid growing global uncertainties.
Source: Reserve Bank of India