The Reserve Bank of India conducted an overnight Variable Rate Reverse Repo (VRRR) auction on October 15, 2026, accepting ₹9,562 crore out of a notified ₹50,000 crore. The cut-off and weighted average rate stood at 5.49%.
RBI Conducts Overnight VRRR Auction
The Reserve Bank of India (RBI) conducted an overnight Variable Rate Reverse Repo (VRRR) auction on October 15, 2026, under the Liquidity Adjustment Facility (LAF). The notified amount was ₹50,000 crore, with a tenor of one day. Total bids received amounted to ₹9,562 crore, which was fully accepted by the RBI at a cut-off rate of 5.49%. The weighted average rate was also 5.49%.
The auction was held from 9:30 AM to 10:00 AM, with the reversal of funds scheduled for October 16, 2026. The partial acceptance percentage at the cut-off rate was not applicable, as all received bids were accepted in full. This operation forms part of the RBI's liquidity management strategy under evolving monetary conditions.
Implication for practitioners: The undersubscribed auction indicates moderate liquidity absorption, signaling stable cash conditions in the banking system. Market participants may infer continued policy consistency, with the repo rate likely remaining anchored unless inflation dynamics shift significantly.