On October 12, 2026, the RBI conducted a 3-day Variable Rate Reverse Repo auction with a notified amount of ₹2 lakh crore. It accepted ₹37,558 crore at a cut-off rate of 5.49%, reflecting measured liquidity absorption in the system.
3-Day VRRR Auction Results: October 12, 2026
The Reserve Bank of India conducted a 3-day Variable Rate Reverse Repo (VRRR) auction on October 12, 2026, with a notified amount of ₹2,00,000 crore. The total amount of bids received was ₹37,558 crore, all of which were accepted at a uniform cut-off rate of 5.49%. The weighted average rate mirrored the cut-off rate, indicating concentrated bidding near the policy threshold.
This short-term absorption operation is part of the RBI’s broader liquidity management framework under the LAF. The relatively low bid amount compared to the notified size suggests that system liquidity remained within manageable levels, despite seasonal or temporary pressures.
Regulatory and Market Significance
The use of multi-day VRRR auctions enables the RBI to manage duration-specific liquidity surpluses. This particular 3-day operation helped smooth out temporary imbalances ahead of upcoming settlement cycles. Financial institutions should factor in such operations when managing repo exposures and cash buffers. The consistent rate of 5.49% across multiple auctions indicates rate stability in the overnight and short-term money markets.