Now Reading: RBI’s Rs 80,170 crore reverse repo auction sees full uptake at 5.24%
-
01
RBI’s Rs 80,170 crore reverse repo auction sees full uptake at 5.24%
The Reserve Bank of India's overnight variable rate reverse repo auction on August 13, 2026, drew bids of Rs 80,170 crore against the notified amount of Rs 1,00,000 crore. The central bank…
The Story in Brief
The Reserve Bank of India's overnight variable rate reverse repo auction on August 13, 2026, drew bids of Rs 80,170 crore against the notified amount of Rs 1,00,000 crore. The central bank accepted all offers received, with the cut-off and weighted average rate both at 5.24 per cent.
The auction, conducted under the Liquidity Adjustment Facility, indicates banks parked Rs 80,170 crore with the RBI for one day. The notified amount was larger than the bids, suggesting market liquidity conditions were tighter than the central bank's target. The full acceptance of offers at the same rate points to a stable short-term money market.
The Indian Opinion
The shortfall in bids against the notified Rs 1 lakh crore is being read by some as a sign of liquidity stress. But the acceptance of the entire amount at a uniform 5.24 per cent shows banks are comfortable, not starved. The real test will be the next few auctions: if bid sizes keep falling below notified amounts, it may signal tighter conditions that warrant an RBI response. Watch the weighted average rate for a clue, not the headline numbers.
Source: rbi.org.in
This story was synthesised by AI from the source linked above.
