The Reserve Bank of India conducted a 3-day Variable Rate Repo (VRR) auction on October 23, 2026, allotting ₹50,003 crore against a notified amount of ₹50,000 crore. The cut-off rate was set at 5.58%, with a weighted average rate of 5.60%.
3-Day VRR Auction Concluded with Partial Bidding Acceptance
The Reserve Bank of India (RBI) conducted a 3-day Variable Rate Repo (VRR) auction on October 23, 2026, under the Liquidity Adjustment Facility (LAF), allotting ₹50,003 crore—marginally above the notified amount of ₹50,000 crore. The auction saw total bids amounting to ₹1,06,949 crore, indicating strong market participation.
The cut-off rate was fixed at 5.58%, while the weighted average rate stood at 5.60%. A partial allotment of 30.99% was made to bids submitted at the cut-off rate, reflecting calibrated liquidity absorption. The reversal of the repo is scheduled for October 26, 2026 (Monday), aligning with short-term liquidity management objectives.
This operation underscores the RBI's ongoing efforts to modulate system liquidity in response to evolving macroeconomic conditions. Market participants should factor in the rate outcome when assessing near-term monetary policy stance and short-term interest rate trajectories.
