The Reserve Bank of India conducted an overnight Variable Rate Reverse Repo (VRRR) auction on October 13, 2026, accepting ₹71,580 crore at a uniform cut-off rate of 5.49%. The notified amount was ₹1.5 lakh crore, with partial demand met due to surplus liquidity conditions.
Overnight VRRR Auction Conducted on October 13, 2026
The Reserve Bank of India (RBI) conducted a 1-day Variable Rate Reverse Repo (VRRR) auction under the Liquidity Adjustment Facility (LAF) on October 13, 2026. The notified amount for the auction was ₹1,50,000 crore. Total bids received amounted to ₹71,580 crore, which the RBI accepted in full at a cut-off rate of 5.49%. The weighted average rate also stood at 5.49%, indicating uniform bidding at the threshold.
This auction was part of the RBI’s routine liquidity management operations amid evolving monetary conditions. The partial acceptance—only 47.7% of the notified amount—took place due to limited demand, reflecting prevailing liquidity positioning in the banking system. The reverse date for the auction is October 14, 2026.
Context and Market Implications
VRRR auctions allow the RBI to absorb short-term excess liquidity. The uniform price method applied here ensures all accepted bids receive funds at the cut-off rate. The continued use of VRRR signals the RBI’s calibrated approach to liquidity absorption without disrupting money market stability. Banks and financial institutions are advised to monitor LAF operations closely for cash management strategies.