On October 12, 2026, RBI conducted a 3-day Variable Rate Reverse Repo (VRRR) auction under the Liquidity Adjustment Facility (LAF), accepting ₹37,558 crore at a uniform cut-off rate of 5.49%.
RBI Conducts ₹37,558 Crore 3-Day VRRR Auction at 5.49%
The Reserve Bank of India conducted a 3-day Variable Rate Reverse Repo (VRRR) auction under the Liquidity Adjustment Facility (LAF) on October 12, 2026, inviting bids for a notified amount of ₹2,00,000 crore. The auction saw total bids amounting to ₹37,558 crore, all of which were accepted at a uniform cut-off rate of 5.49%. The weighted average rate was also 5.49%, with no partial acceptance.
The auction, held from 9:30 AM to 10:00 AM, reflects moderate absorption of excess liquidity amid ongoing monetary management. The reversal date for the funds is October 15, 2026. Such VRRR operations are used by the RBI to temporarily absorb surplus liquidity from the banking system and fine-tune short-term interest rates.
For banking institutions, participation in such auctions remains a key component of daily liquidity management. The relatively low response suggests stable system liquidity or alternative investment preferences by banks. Lawyers advising banks on treasury operations should note that reverse repos continue to be a permissible and regulated instrument under the RBI Act, 1934.
