The Reserve Bank of India conducted two Variable Rate Reverse Repo (VRRR) auctions on September 29, 2026, amounting to ₹3 lakh crore, to manage liquidity. The cut-off and weighted average rate for both auctions was 5.24%.
Dual VRRR Auctions Conducted to Manage Liquidity
The Reserve Bank of India (RBI) conducted two separate Variable Rate Reverse Repo (VRRR) auctions on September 29, 2026, under the Liquidity Adjustment Facility (LAF), aggregating ₹3 lakh crore. The first auction, notified for ₹2 lakh crore, was conducted from 09:30 AM to 10:00 AM, while a second auction of ₹1 lakh crore was held from 11:30 AM to 12:00 Noon. Both auctions were part of the RBI’s continued efforts to calibrate liquidity conditions amid evolving monetary demands.
Auction Results and Rates
The results of the morning auction, announced later in the day, reflected a total acceptance of ₹1.19 lakh crore out of ₹2 lakh crore notified. The cut-off rate and weighted average rate stood at 5.24%. All bids were fully accepted up to the cut-off, with no partial acceptance. This matched the rate from the previous day’s VRRR auction held on September 28, 2026, which also closed at 5.24% with ₹1.11 lakh crore accepted against a notified amount of ₹2 lakh crore.
Monetary Management and Market Implications
The sequencing of two VRRR auctions on the same day signals active liquidity absorption by the RBI, suggesting a temporary surplus in the banking system. The consistent cut-off rate of 5.24% indicates rate stability in the overnight money market. For banking and financial institutions, these operations provide a reliable corridor for surplus fund deployment. Market participants will closely monitor RBI’s liquidity actions for cues on future monetary policy tightening or easing, particularly with inflation and growth outlooks remaining key policy anchors.