On October 19, 2026, RBI conducted a 7-day VRR auction with a notified amount of ₹1,00,000 crore. The cut-off rate was 5.51%, weighted average rate at 5.52%, with 56.04% partial allotment to high-rate bids.
RBI’s 7-Day VRR Auction Concludes with Strong Response
The Reserve Bank of India conducted a 7-day Variable Rate Repo (VRR) auction on October 19, 2026, with a notified amount of ₹1,00,000 crore. The total bids received amounted to ₹1,50,735 crore, indicating strong liquidity demand. The final amount allotted was ₹1,00,014 crore.
The cut-off rate was set at 5.51%, while the weighted average rate stood at 5.52%. A partial allotment of 56.04% was made to bids placed at the cut-off rate, in line with RBI’s multiple-price auction methodology. The operation was conducted under the Liquidity Adjustment Facility (LAF) to manage systemic liquidity.
The auction outcome suggests that banks continue to access VRR facilities for short-term funding management. The slight oversubscription and competitive rate indicate stable but tight near-term liquidity conditions. For treasury departments, these operations remain critical for managing daily cash positions amid fluctuating government receipts and expenditures.
