The Reserve Bank of India conducted a 1-day Variable Rate Reverse Repo (VRRR) auction for ₹2 lakh crore on October 8, 2026, from 11:00 AM to 11:30 AM under the Liquidity Adjustment Facility. The auction was fully accepted, with reversal scheduled for October 9, 2026.
RBI Conducts 1-day ₹2 Lakh Crore VRRR Auction
On October 8, 2026, the Reserve Bank of India (RBI) conducted a 1-day Variable Rate Reverse Repo (VRRR) auction under the Liquidity Adjustment Facility (LAF) for a notified amount of ₹2,00,000 crore. The auction window remained open from 11:00 AM to 11:30 AM. The operation was carried out to manage evolving liquidity conditions in the financial system.
The reverse leg of the transaction is scheduled for October 9, 2026 (Friday), indicating a short-term absorption of liquidity. The RBI did not disclose the cut-off or weighted average rate for this auction, but such operations are typically rate-based, allowing banks to bid at variable rates within a specified corridor.
Implication: This 1-day VRRR reflects the RBI’s calibrated approach to liquidity management, ensuring stability in overnight rates amid fluctuating cash positions in the banking system. Market participants should monitor follow-up operations for signals on the central bank’s near-term monetary stance.