The RBI conducted a 10-day Variable Rate Reverse Repo (VRRR) auction on October 9, 2026, and announced a second 3-day VRRR auction the same day, both under the Liquidity Adjustment Facility. The 10-day auction accepted ₹18,170 crore at a cut-off rate of 5.49%.
RBI Conducts Multiple VRRR Auctions to Manage Liquidity
On October 9, 2026, the Reserve Bank of India conducted a 10-day Variable Rate Reverse Repo (VRRR) auction under the Liquidity Adjustment Facility (LAF), accepting ₹18,170 crore out of a notified amount of ₹1,50,000 crore at a cut-off rate of 5.49%. The weighted average rate was also 5.49%. The same day, the RBI announced a 3-day VRRR auction for ₹1,50,000 crore, scheduled for reversal on October 12, 2026.
These auctions reflect the RBI’s active management of short-term liquidity conditions amid evolving monetary dynamics. The partial acceptance in the 10-day auction suggests limited excess liquidity in the system, prompting the RBI to fine-tune absorption. VRRR auctions allow the central bank to adjust the liquidity withdrawal amount and rate based on prevailing market conditions.
For financial and corporate legal advisors, such operations signal evolving monetary policy stances and can impact interest rate trajectories. Clients with large cash management operations or short-term investment portfolios should be informed of potential volatility in call money and repo rates. Monitoring RBI’s LAF operations is essential for transactional timing and debt structuring advice.