RBI conducted a 29-day VRRR auction on October 8, 2026, with a notified amount of ₹2 lakh crore. Total bids received amounted to ₹79,655 crore, all accepted at a uniform cut-off rate of 5.49%, indicating insufficient demand.
RBI 29-day VRRR Auction Sees Partial Subscription
The Reserve Bank of India conducted a 29-day Variable Rate Reverse Repo (VRRR) auction on October 8, 2026, with a notified amount of ₹2,00,000 crore. The auction window was open from 9:30 AM to 10:00 AM. However, total bids received amounted to ₹79,655 crore, all of which were accepted at a uniform cut-off rate of 5.49%. The weighted average rate also stood at 5.49%.
The reversal date for this operation is November 6, 2026 (Friday), indicating a medium-term liquidity absorption. The partial acceptance reflects subdued demand from banks to park surplus funds for nearly a one-month tenor, possibly due to anticipated credit deployment or fiscal payments.
Implication: A lower-than-notified acceptance suggests that banks retain appetite for deploying liquidity elsewhere. For legal and compliance teams in banks, such auctions are key markers in treasury risk management and regulatory reporting under prudential norms. The rate of 5.49% offers a benchmark for short-to-medium-term risk-free returns.
