On October 6, 2026, the RBI conducted a Variable Rate Reverse Repo (VRRR) auction under the LAF, accepting ₹1,92,357 crore out of a notified ₹2,50,000 crore at a uniform cut-off rate of 5.24%.
Overnight VRRR Auction Conducted at 5.24%
The Reserve Bank of India (RBI) conducted a Variable Rate Reverse Repo (VRRR) auction on October 6, 2026, under the Liquidity Adjustment Facility (LAF), with a notified amount of ₹2,50,000 crore. The auction received total bids amounting to ₹1,92,357 crore, which were fully accepted at a cut-off rate of 5.24%, resulting in a weighted average rate of 5.24%.
The tenor of the auction was one day, with reversal scheduled for October 7, 2026. The operation was conducted from 9:30 AM to 10:00 AM, reflecting the RBI’s continued monitoring of liquidity conditions to maintain stability in the money market.
This move indicates the RBI's calibrated approach to liquidity management amid evolving macroeconomic conditions. The undersubscription suggests moderate liquidity absorption, which may signal tightening or stable money market conditions in the near term.