Question
What was the cut-off rate set in the RBI’s latest
Variable Rate Reverse Repo (VRRR) auction conducted in July 2025?Solution
In the latest VRRR auction held by the RBI in July 2025, bids worth ₹1.7 trillion were received, of which ₹1 trillionwas accepted at a cut-off rate of 5.47%. The auction reflects the central bank’s efforts to manage the temporary liquidity surplus while maintaining policy rate transmission in line with its monetary stance.
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